VIENNA, March 11 (Reuters) - A large trust established for the family of fallen Austrian property tycoon Rene Benko has filed for insolvency, it said on Wednesday, after it was ordered to pay around $
Austrian Tycoon Benko’s Family Trust Enters Insolvency After $1 Billion Ruling
Background and Details of the Benko Family Trust Insolvency
Filing for Insolvency After Arbitration Ruling
VIENNA, March 11 (Reuters) - A large trust established for the family of fallen Austrian property tycoon Rene Benko has filed for insolvency, it said on Wednesday, after it was ordered to pay around $1 billion to firms belonging to Abu Dhabi sovereign wealth fund Mubadala.
Collapse of Signa and Its Impact
The step follows the collapse from 2023 onwards of Benko's property group Signa, itself Austria's biggest insolvency, which once held a large portfolio of luxury properties such as five-star hotels in Venice and Vienna, and stakes in department-store chains including Switzerland's Globus and Britain's Selfridges.
Legal Troubles and Convictions
Benko’s Arrest and Sentencing
Benko has been in prison since his arrest a year ago on suspicion of having committed various offences including fraud. He was convicted of insolvency-related fraud in October and sentenced to two years in prison, before being convicted of the same offence two months later and given a suspended sentence.
Denial and Appeals
Benko denies wrongdoing and is appealing both convictions.
Details of the Insolvency Filing
Statement from the Laura Private Foundation
"Due to payment obligations arising from two arbitration awards, the board of trustees of the Laura Private Foundation has filed for insolvency," the board of the trust named after Benko's daughter said in a statement.
Court Confirmation
The court in Benko's home city of Innsbruck where the statement said the insolvency claim had been filed confirmed it had received the claim and said it had opened insolvency proceedings.
Arbitration Awards and Mubadala’s Role
International Court of Arbitration Decision
In January, the International Court of Arbitration in Switzerland ordered the trust in two awards to pay three companies from the United Arab Emirates 900 million euros ($1 billion) in total in recognition of claims they had made, creditors' association KSV 1870 said.
Connection to Mubadala
KSV 1870 official Klaus Schaller said those companies belonged to Mubadala.
Exchange Rate Information
($1 = 0.8624 euros)
Reporting Credits
(Reporting by Alexandra Schwarz-GoerlichWriting by Francois MurphyEditing by Tomasz Janowski)
