Selfridges co-owner faces fraud inquiry call
THE property empire of Selfridges tycoon Rene Benko is facing a criminal fraud complaint as creditors push for an inquiry into “unlawful transactions”.
Signa Development – part of the Benko property empire which is an investor in Selfridges – filed for insolvency in late December.
Now, lenders to Signa have filed a criminal complaint with Austrian antifraud prosecutors raising concerns over “a considerable outflow of assets of more than €662m (£567m)” from one of its holding companies to shareholders and sister companies ahead of its collapse. According to the Financial Times, the lenders claim there was a “presumably deliberate” lack of transparency before Signa Development declared itself bust. They claim: “It is suspected that the asset transactions described were carried out in wilful violation of the mandatory capital maintenance regulations [of the company] and to the detriment of Signa Development and its creditors.”
Austria’s state prosecutor for economic crime declined to comment on specific complaints. Signa did not respond to requests for comment.
It is the latest twist in the collapse of one of the world’s largest property empires which counted major banks and wealth funds among its lenders.
At the time it failed, Signa owed European banks almost £7bn. The company was pushed to the brink by high interest rates and plummeting valuations.
It is currently going through a self-administration process whereby it is racing to raise cash.
The complex Signa business is understood to involve around 1,000 entities.