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Froiber goes bust
By Charles Charalambous
(archive article - Sunday, June 21, 2009)
A&G PROPERTY Wise Development Ltd (A&G),the company operating the Froiber brand in Cyprus, will be liquidated on 17 July for repeated failure to make employer’s social security contributions.
The Social Security Fund (SSF) lodged a request with Nicosia District Court on 4 May 2007 for the company to be liquidated. The liquidation order was finally issued on 18 November 2008, with effect on 18 May 2009. At A&G’s request, the court agreed to postpone execution of the order for two months, to 17 July 2009.
As required by law, the announcement of the request for liquidation appeared in the Government Gazette of 24 April 2008, and will have appeared in at least one newspaper. However, owners of property built by A&G who are still without title deeds might still be unaware of the company’s impending liquidation.
In any case, as unsecured creditors, their claims will have to wait in line behind the SSF, the banks and then any other holders of security or guarantees from A&G. Ultimately, they will probably have to argue their case in court.
When contacted by the Sunday Mail to discuss his company’s liquidation, Director and company owner of A&G Georgios Andreou denied “any link whatsoever” with various Froiber companies. The simple fact is that the listed telephone number for Froiber Estates Agents is the same office number given for A&G in its own documents.
A&G’s official accounts for 2003 – the last accounts lodged with the Companies Registry – also demonstrate a direct link with companies such as Froiber Land Developments Ltd, Froiber Estates Ltd, Froiber Marisa Developers Ltd and Froiber Hellas – a 100 per cent-owned Greek subsidiary which made total losses of €1.77 million in 2003, rising to €2.31 million in 2004. The accounts also refer to an 80 per cent share valued at C£749,638 in a UK affiliated company, Southbury Lets Ltd., which entered into voluntary liquidation in September 2005, and was dissolved in August 2008. There is also an unconfirmed link with Froiber (UK) Ltd, whose Chairman listed as a George Andreou, signed a resolution in July 2007 to voluntarily wind up the company. This company was dissolved in April 2009.
So how could a company worth millions on paper fail repeatedly to pay a relatively modest amount – just 15 per cent of payroll, e.g. C£27,000 in 2003 – to cover its social insurance obligations to employees. The SSF routinely goes to court over a debt of €2,000-3,000. It has been suggested by a legal source that A&G owes as much as €500,000. Even with compound interest, it would take years to rack up that amount. If the suggested figure is even remotely accurate, this would imply that at best someone in the SSF has displayed gross negligence.
http://www.cyprus-mail.com/cyprus/froiber-goes-bust
By Charles Charalambous
(archive article - Sunday, June 21, 2009)
A&G PROPERTY Wise Development Ltd (A&G),the company operating the Froiber brand in Cyprus, will be liquidated on 17 July for repeated failure to make employer’s social security contributions.
The Social Security Fund (SSF) lodged a request with Nicosia District Court on 4 May 2007 for the company to be liquidated. The liquidation order was finally issued on 18 November 2008, with effect on 18 May 2009. At A&G’s request, the court agreed to postpone execution of the order for two months, to 17 July 2009.
As required by law, the announcement of the request for liquidation appeared in the Government Gazette of 24 April 2008, and will have appeared in at least one newspaper. However, owners of property built by A&G who are still without title deeds might still be unaware of the company’s impending liquidation.
In any case, as unsecured creditors, their claims will have to wait in line behind the SSF, the banks and then any other holders of security or guarantees from A&G. Ultimately, they will probably have to argue their case in court.
When contacted by the Sunday Mail to discuss his company’s liquidation, Director and company owner of A&G Georgios Andreou denied “any link whatsoever” with various Froiber companies. The simple fact is that the listed telephone number for Froiber Estates Agents is the same office number given for A&G in its own documents.
A&G’s official accounts for 2003 – the last accounts lodged with the Companies Registry – also demonstrate a direct link with companies such as Froiber Land Developments Ltd, Froiber Estates Ltd, Froiber Marisa Developers Ltd and Froiber Hellas – a 100 per cent-owned Greek subsidiary which made total losses of €1.77 million in 2003, rising to €2.31 million in 2004. The accounts also refer to an 80 per cent share valued at C£749,638 in a UK affiliated company, Southbury Lets Ltd., which entered into voluntary liquidation in September 2005, and was dissolved in August 2008. There is also an unconfirmed link with Froiber (UK) Ltd, whose Chairman listed as a George Andreou, signed a resolution in July 2007 to voluntarily wind up the company. This company was dissolved in April 2009.
So how could a company worth millions on paper fail repeatedly to pay a relatively modest amount – just 15 per cent of payroll, e.g. C£27,000 in 2003 – to cover its social insurance obligations to employees. The SSF routinely goes to court over a debt of €2,000-3,000. It has been suggested by a legal source that A&G owes as much as €500,000. Even with compound interest, it would take years to rack up that amount. If the suggested figure is even remotely accurate, this would imply that at best someone in the SSF has displayed gross negligence.
http://www.cyprus-mail.com/cyprus/froiber-goes-bust
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