Signa Creditors Demand Answers on $700 Million of Missing Funds
- Money was moved via loans to other parts of Benko’s empire
- Recouping funds could be decisive to debt restructuring payout
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After backing a restructuring plan on Monday, bondholders of one of Signa Holding GmbH’s key property units are still demanding answers over a missing batch of funds worth around €675 million ($737 million.)
The funds, equivalent to about 30% of Signa Development Selection AG’s total assets, were siphoned off in loans to other parts of Austrian tycoon Rene Benko’s business empire, according to a report by the administrator seen by Bloomberg News. Some of the money ended up at majority shareholder Signa Holding and about half went to two structures created to help another unit, Signa Prime Selection AG, avoid incurring German taxes on property transactions.