The Munich authorities did not want to comment on the report to the newspaper. Benko’s lawyer said he was not familiar with the proceedings. According to “BamS” it is regarding a construction project between Munich Central Station and Karlsplatz (Stachus).
According to the report, Benko’s companies are said to have collected almost 1 billion euros from banks and investors for the acquisition and development of the “Munich’s New Center” project. 120 million euros are said to come from Raiffeisen Bank International (RBI), the newspaper writes, citing Signa files and land register extracts. The Benko companies are said to have provided inflated information regarding future rental income in order to obtain higher loans at better conditions. A large part of the money is said to have flowed abroad.
In the insolvency proceedings of Signa Prime Selection, a plan for the disposal of the properties is to be presented to the creditors in Vienna today (Monday). The creditors are scheduled to vote on the restructuring plan on March 18th.
