Insolvency Administrator Initiates Lawsuit Against Liechtenstein Foundation in René Benko Case

Legal Action Targets Liechtenstein Foundation

An insolvency administrator has launched legal proceedings against a foundation in Liechtenstein, seeking to recover assets for creditors impacted by the collapse of Austrian real estate magnate René Benko's business empire. The lawsuit focuses on the INGBE Stiftung, a private trust established by Benko and his mother, Ingeborg Benko, in 2014. This development is part of broader efforts to trace and reclaim funds following the insolvency of the Signa Group and Benko's personal bankruptcy.

The INGBE Foundation and Alleged Asset Shifts

The INGBE Stiftung has come under scrutiny for allegedly holding significant assets that creditors believe should be available to settle debts. Reports indicate that as of summer 2022, the foundation held gold worth €45 million and substantial cash reserves. A key point of contention is a transaction in August 2023, shortly before Signa's financial collapse, where the INGBE Foundation reportedly acquired six luxury villas on Lake Garda from Signa Holding for €46 million. This exchange involved Signa Prime shares, which subsequently became worthless, raising questions about the nature of the deal.

Further allegations suggest that in December 2023, the INGBE Foundation transferred €3 million and then €2 million to Ingeborg Benko, René Benko's mother. These transfers, purportedly for 'family support' and sourced from gold sales, were reportedly intended to flow to René Benko through a loan agreement with his mother. Such transactions are being investigated as potential attempts to shield assets from creditors.

Broader Insolvency Context and Investigations

The lawsuit in Liechtenstein is one facet of the extensive fallout from the Signa Group's insolvency, which saw its holding company file for restructuring in November 2023, followed by key subsidiaries like Signa Prime Selection AG and Signa Development Selection AG. René Benko himself filed for personal insolvency in March 2024.

Prosecutors in Liechtenstein, Austria, and Germany are conducting investigations into Benko and his companies, probing allegations of insolvency fraud and money laundering. The complex structure of Benko's corporate network, comprising over a thousand companies, has made tracing assets a challenging task for insolvency administrators and investigators.

Challenges in Asset Recovery

Insolvency administrators face a significant challenge in recovering funds, particularly those held within foundations in jurisdictions like Liechtenstein. While efforts are underway to access these assets, the legal processes can be complex. The aim of these legal actions is to ensure that creditors receive their rightful dues from the remnants of Benko's once-vast real estate and retail empire.