Mubadala’s €1 Billion Award Pushes Trust Linked to Signa’s Benko Into Insolvency

A private foundation co-founded by former real estate tycoon Rene Benko has collapsed into insolvency after a court ruled it owed sovereign wealth fund Mubadala Investment Co. about €1 billion ($1.2 billion) on soured investments.

Laura Privatstiftung filed for insolvency in Innsbruck, deeming it didn’t have the means to meet its obligations to Mubadala, it said in a statement. The foundation was co-founded by Benko in 2006, and some of its units became deeply intertwined with the financing of his sprawling Signa real estate and retail empire.