Restructuring expert Geiwitz leaves legal construct open in the Benko case
Published: Thursday, Nov 9th 2023, 13:31
Volver a Live Feed
Even without any recent operational activity in the Group, ex-Signa director Benko could also face possible liability issues as a "de facto managing director" in the event of a case.
Even the day after Signa mastermind Rene Benko was stripped of his power by his billionaire investors, questions surrounding the troubled real estate and retail group remain unanswered. The fact is that reorganizer Arndt Geiwitz exercises Benko's previous voting rights - the legal construct behind this is unclear. According to Ö1's "Mittagsjournal" on Thursday, Geiwitz wants to clarify by the end of November how he envisages the restructuring, which is absolutely necessary.
The Signa Group with a balance sheet total of 27 billion euros remains opaque. According to the radio report, Geiwitz also wants to know in three weeks at the latest who will have to contribute how much and where within Signa. During this time, the Geiwitz team and two law firms will be looking at the most important real estate areas of Signa, whose total assets are reportedly estimated at 20 billion euros. They are examining further business prospects for buildings - i.e. where something can be earned, where there are potential buyers.
Globus could be sold
Talks are being held with potential lenders in Europe and the Arab world. Negotiations with lending banks will also be important, according to Ö1 without citing sources. Unconfirmed information that Signa could shrink to its core real estate business is also growing. Globus in Switzerland and the department store chain Galeria Karstadt Kaufhof in Germany could then be sold.
The newspaper "Presse" (Thursday) raises the question of whether Benko, despite not having had an actual operational function in his life's work for years, was not possibly the "de facto managing director" who could be held liable in the event of the case. For observers, there is no doubt that Benko was in charge until the handover to Geiwitz. Benko himself allegedly often referred to himself as "Chairman". The 46-year-old indirectly holds the majority of shares in his "baby" via his family foundation.
Liabilities in the multiple billion range
Geiwitz must now prevent the liquidity bottleneck from widening. Most recently, for example, there was a construction freeze on one of the most prestigious projects of all - the Elbtower in Hamburg. According to the media, the liabilities amount to several billion euros. A total of up to EUR 15 billion has been reported, for example from the "Kronen Zeitung" newspaper, in which Benko also holds shares - atypical for Signa's core business - as well as in the "Kurier" newspaper. Geiwitz is also likely to take a close look at these investments. Short-term debts are said to amount to EUR 2 billion - of which EUR 1.3 billion is still to be serviced this year.
The fact that there has long been a term for this in case law was addressed by lawyer Alfred Nemetschke in a LinkedIn post, according to the "Presse". A "de facto managing director" refers to a person who is not formally appointed as a managing director, but who pulls the strings in the company. And therefore also bears the corresponding responsibility. Including full liability risk.
"A de facto managing director is anyone who - without being formally appointed - exerts significant influence on the management of the company, regardless of whether they are an employee, shareholder, relative or outsider", according to a legal principle of the Supreme Court (OGH, RS0119794), the newspaper report states. Whoever takes on this role also has the duties of a company director. If this involves legal acts that are reserved for appointed managing directors, they must influence them accordingly. According to case law, whether someone assumes this role must be assessed on a case-by-case basis.
Media inquiries unanswered
While investors liked to boast about their investments in Signa and Benko's talent in better times, there is now silence. Benko investor Hans Peter Haselsteiner only let it be known that Geiwitz's office is now providing information. This referred to Signa, which has not responded to media inquiries for weeks and only sent out a one-page press release yesterday.
According to the newspaper "Der Standard", citing insiders, Geiwitz is said to have received neither Benko's voting rights nor his shares. A complex legal solution ensures that Geiwitz represents Benko's voting rights, even without a transfer. There should be no time limit. After all, it remains to be seen how long it will take for Benko's "baby" to recover - and under what circumstances this is possible.
©Keystone/SDA
Spanish 
English 
German 
French 
Arabic