Signa Prime Administrator Blames Board for €1 Billion of Damages

The administrator of Rene Benko’s bankrupt luxury property unit is asking former supervisory board members to acknowledge their role in causing at least €1 billion ($1.03 billion) of alleged damages by failing to practice proper oversight.

Law firm Abel Rechtsanwälte GmbH claims board members of Signa Prime Selection AG, including former Austrian Chancellor Alfred Gusenbauer, had ignored that the group was materially insolvent by March 2022 — if not earlier, according to a letter seen by Bloomberg. They also signed off on improper loans between Signa companies, the bankruptcy advisors say.

One such transaction related to managers ...