US Edition
Ex-Morgan Stanley chairman sues Austrian tycoon’s empire over $14m ‘unpaid fees’
Rene Benko is alleged to have made agreement at a Mayfair private members club in 2015
The former chair of US investment bank Morgan Stanley is suing Rene Benko’s stricken property empire over an allegation that he is owed €14m (£12.25m) in ‘unpaid fees’.
Walid Chammah has launched High Court proceedings against Signa, The Telegraph can reveal, the Austrian investor which last week gave up control of historic British retailer Selfridges.
The brewing legal dispute is the latest blow to Mr Benko’s crumbling fortunes, as Signa battles an ongoing cash crunch that came to light earlier this month.
Court papers allege that Mr Chammah, formerly an advisory board member at Signa, has not received millions of pounds in fees that he says Mr Benko promised to pay him as part of an agreement struck in a Mayfair private members’ club in 2015.
It is argued that Mr Chammah agreed to advise Mr Benko and Signa “in respect of their efforts to acquire the German department store chain Galeria Kaufhof”.
Mr Chammah claims Mr Benko agreed to pay him €14m for his services.
A further agreement was then allegedly reached with Signa in 2016 which promised to pay Mr Chammah, who led Morgan Stanley International from 2007 to 2012, a €500,000 monthly retainer.
Three years later, Signa announced a deal to take full ownership of Galeria Kaufhof, triggering an agreement to pay Mr Chammah his alleged success fee.
However, his lawyers now allege that “Signa has not paid the said sum to Mr Chammah or any part of it”.
That is despite claims that “Mr Benko on behalf of Signa has repeatedly acknowledged the outstanding debt due, including in conversations with Mr Chammah on 30 March and 1 May 2023”.
Earlier this month, Mr Benko was ousted from Signa after shareholders drafted in restructuring specialists.
While at the helm of Signa, Benko’s property portfolio bought up stakes in the Chrysler Building in New York and Berlin’s luxury department store KaDeWe.
The business entered Britain’s retail market in 2021 after acquiring a 50pc stake in Selfridges when the retailer was valued at £4bn.
Earlier this year, Mr Benko, a high school drop-out, was estimated to have a personal fortune of around €6bn by Forbes.
Shareholders in Signa, including Austrian construction tycoon Hans Peter Haselsteiner, are scrambling to save the business via an emergency capital injection.
Signa, which is yet to file its defence in the case, was contacted for comment.
Mr Chammah declined to comment.