Mohammad Jafari-Fini has lost control of Chesterton after his company, Phoenix Acquisitions, defaulted on a loan.
AIM-listed venture capital firm Resurge, run by Jonathan Rowland, son of property investor David Rowland, lent Phoenix £12.86m for the acquisition, but Phoenix breached the terms of the expensive short-term loan.
Resurge then exercised its right to take over Phoenix’s stake in Chesterton, increasing its holding from 25% to 87%.
Jafari-Fini has now resigned as chairman and been replaced by Graham Robeson, an associate of the Rowlands.
References: EGi News 13/01/04
