The money is flowing into Orco fast and furious now, with the announcement that the board had approved a third capital sale of shares worth €3m. Perhaps anticipating further criticism from some shareholders, the company issued a defense of its recent moves.
Contrary to what these entities have alleged, the capital increases that Orco Property Group has recently concluded were made transparently, while fully respecting the applicable legislative and statutory requirements as well as the fundamental rights of its shareholders.
Orco management’s basic point right now is that changing horses in mid-stream is a risky venture, and that there’s no guarantee the new shareholders have the expertise or the financial backing to take the company forward. And it’s ratcheting up the strong language department:
The Board of Directors strongly disapproves of this latest destabilization attempt initiated by the minority group of shareholders led by Mr. Mattei, for whom the future objectives and strategies for the company continue to remain undeclared. The Board of Directors once again emphasizes that the intentions of these shareholders, some of whom being in open conflict against Orco Property Group S.A., appear to directly contradict the interests of the company and its other shareholders.
This minority group of shareholders acting in concert, that today represents less than 8% of our total shareholders, would like the public to believe that they hold a miracle solution in the form of a spontaneous, sizeable and unparalleled reduction in the company’s debts that would be approved by the bondholders. It is worth remembering that these very same bondholders refused the company’s restructuring proposals on 24 September, 2009 which proposed more favourable terms than those that seem to be implied by this group of shareholders.
The whole thing can be found here.