Atrium European Real Estate has announced that it intends to pursue a €2bn High Court damages claim against its former management.
In an announcement this morning the Central and Eastern European shopping centre developer and manager said that its board of directors resolved yesterday to pursue claims against Austrian-born banker Julius Lindbergh Meinl, his Meinl Bank and his food and drink company Julius Meinl Aktiengesellschaft.
The claim is for the sum of over €2bn in loss and damage allegedly suffered by Atrium in connection with actions relating to its former management prior to 1 August 2008 when it was known as Meinl European Land Ltd.
Meinl Bank was the owner of Meinl European Land which changed its name to Atrium European Real Estate in 2008 when it was taken over by Citi Property Investors and Gazit Holdings.
Also named as potential defendants in the case are former Meinl European Land chairman Georg Kucian and board members Peter Weinzierl, Stephan Visy, Gunter Weiss, Heinrich Schwagler, and Karel Romer.
A spokesman for Atrium said “since the current management took over the running of Atrium, the OeNB, the FMA, The Jersey Financial Service Commission and the Austrian criminal authorities have been investigating the activities of Julius Meinl, Meinl Bank and certain former directors of MEL.
“This led the Company’s management to believe it was in the company’s best interests to begin its own parallel investigation into the allegations.
“Having reviewed the information gathered to date as a result of these ongoing investigations, the board of Atrium has therefore decided that it is in the best interests of the company and its shareholders to pursue litigation against the Defendants to seek appropriate redress,” he said.
OeNB is the Austrian National Bank. The FMA is the Austrian Financial Market Authority.
christian.metcalfe@estatesgazette.com
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