It looks like open warfare between Orco Property Group and its former CFO Luc Leroi. In a press release, Orco charged that Leroi called a series of bondholder meetings under vague conditions.
Only upon a review of the voting certificates prepared by Mr. Leroi, but not published in the press, were Mr. Leroi’s intentions made clear: Mr. Leroi sought to withhold EUR 750,000 from Orco’s 30 April payment to Bondholders under the Plan de Sauvegarde. He intended to use these funds at his own discretion to pay fees to himself and various advisors involved in legal proceedings against Orco.
Orco found what it called irregularities in the convening notices and got the meetings cancelled. It says that as a result, it paid bondholders the full amount due, with no funds going to Leroi.
Orco does more than just hint at tension in its relationship with Leroi
When Mr. Leroi left Orco in 2009 as Chief Financial Officer, he committed not to engage in activities that could potentially damage Orco. As the Bondholders’ representative since late 2009, Orco fails to see how he has met this commitment and fails to see how he has acted in the best interest of all Bondholders.
Of course, this is just one side of the story. We don’t pretend to know how fair or unfair these charges are, but we’re open to other opinions. Read the whole press release for yourself here.