Atrium European Real Estate is suing Austria’s Meinl Bank, the bank’s supervisory board chairman Julius Meinl V, its chief executive, and former managers of Atrium for more than EUR 2bn in damages, the company announced in a press release.
Atrium European Real Estate is suing Austria’s Meinl Bank, the bank’s supervisory board chairman Julius Meinl V, its chief executive, and former managers of Atrium for more than EUR 2bn in damages, the company announced in a press release.
The claim relates to losses suffered by Atrium prior to 1 August 2008 under the former management, when it was known as Meinl European Land. The claim comes two years after a group led by Israeli investor Gazit Globe took control of the Austrian property company, replaced its management and restructured the company. According to news wire Reuters, the lawsuit is largely based on the same events that are the basis for an ongoing probe against Julius Meinl by Austrian prosecutors who suspect he defrauded Meinl Land shareholders and funneled the company's funds into his bank's coffers.
Meinl Bank said that the claims were 'incomprehensible and absurd' and insisted that it had always acted within the relevant local laws in providing investment banking services and advice to Meinl European Land.
Listed in Vienna and Amsterdam, Atrium European Real Estate specialises in shopping mall development in CEE, Turkey and Russia.
