New management Immofinanz ends 'Petrikovics era'

The question of what happened to the EUR 512 mln which went 'missing' under former Immofinanz/Immoeast CEO Karl Petrikovics has been resolved, the new management of the Vienna-based concern has announced. 'Most of the money was evidently used to purchase shares, and some to purchase investments within Constantia Privatbank. Losses were incurred there due to falling share prices. However, the executive board considers the bond to be a solid investment as it is guaranteed by Constantia Packaging BV.'

The new CEO of Immofinanz, Thomas Kleibl, made the statement during a joint press conference with the company's new CFO Eduard Zehetner. The two directors based the information on statements made by Petrikovics to the public prosecutor which have been published in the media. During the press conference, they appealed to the media to 'make a clear distinction in their reports between events under former CEO Petrikovics and the new management’s efforts to clarify issues and press ahead with restructuring.'

Kleibl said the Immofinanz Group had made 'an important contribution to clarifying all the murky transactions carried out in recent years'. 'We will support the authorities wherever we can. Yet above all, with the help of our staff and the acknowledged quality of our properties, we will build up a transparent and successful real estate group. We have full confidence that the Austrian legal system will clear up any criminal offences that may have been committed. The shareholders can rest in the knowledge that we are devoting all our efforts to working for our company.'

According to the two directors, Petrikovics played off various interests against one another instead of concentrating on the two companies. They added that they have both started transferring the management duties previously carried out by CPB to the Immofinanz Group. 'This has finally brought the Petrikovics era to an end. There is now a clear framework of competencies along with clear and transparent management responsibilities.'

Both directors are working solely for Immofinanz and Immoeast and are drawing up a business plan for the two companies which will help safeguard liquidity and facilitate restructuring. Restructuring negotiations are currently being held with six core banks and Kleibl said he planned to achieve 'the first milestone' in this process by Christmas
.
Property development projects for which there is no secure financing, or whose profitability cannot be guaranteed in the current crisis, have been, or will be, stopped, Kleibl said, adding that other properties would be sold off.

CLICK ON THE LINK BELOW TO READ: IMMOFINANZ SELLS ASSETS FOR EUR 130m