Anzor Qoqoladze: "I request the abolishment of my own 5.5 million USD worth of shares, 55% unjustifiable alienation from TBC Bank"
Anzor Qoqoladze, shareholder of Elit-Electronics, want to re-take company shares purchased by TBC Bank, at three times the price they cost before. He says that if TBC Bank is really interested in reducing their own debts then it should be important for them to sell those shares at triple the price. Below is the statement of Anzor Kokoladze.
“We offer TBC Bank the abovementioned buy-in for 348 thousand USD. On the contrary they, TBC Bank, allegedly reiterate that 55% of Elit-Electronics shares had been taken over with an actual price of 116 thousand GEL. In addition, in 2008, the company stood on the edge of bankruptcy, and had been evaluated at just 80 million USD worth of value, with the market value nearing zero in 2010. “Henceforth, if this was the case and TBC Bank really plans to reduce the liability standing on behalf of them, then they should be ready to accept 348 thousand USD instead of zeroing the market value of the company, the total of which is worth 116 thousand USD.
Generally speaking, TBC Bank didn’t even need 55% of shares for the purpose of managing the company, Elit-Electonics. Owing to the courts’ decision, TBC even before the takeover had majority management power, therefore the fact that they took 55% shares clearly attests that they misappropriated the company on the whole, and are now exploiting it as their private money-box.
It is clear that TBC Bank has behaved inappropriately, with the primary purpose of removing the previous management who constituted a barrier to their plans. There are already many unanswered questions on our side, for which Georgian society needs clear answers.
I will state only some of them here: Why didn’t Mr. Butskhrikidze answer the question posed to him by a Business Courier journalist on whether TBC Bank was going to remain in management even if all the liabilities were covered by Elit-Electronics and most importantly, if they wanted to reduce the debts incurred during the old management, why they covered the 1,300,000 USD liability that had been taken as credit from ex-People’s Bank?
All those facts give us the idea that TBC Bank was not a reliable partner, and that they intentionally, beforehand, wanted to seize possession of Elit-Electronics.
However, in May 2010 TBC offered us 51% of shares to buy-in and but we denied. Thereafter TBC exploited that matter and used thoroughly unjustifiable methods to take over the company. Even though the latter steps turned out to be considerably successful for them, all the inappropriate actions taken will boomerang against TBC in the near future.
As a shareholder of Elit-Electronics I repeatedly asked them to provide me with financial statements/information but in vain, even though I am eligible to be informed on such matters.
If we trust what the new management at Elit-Electronics says, they are operating on even higher margins than planned before. However, when they issued the financial report for the first quarter of 2010 where there was much talk about the extra revenue (11,500,000 GEL, 500,000 more than planned), it was during the time of our management still, not theirs. Hence the new management consciously broke the credit agreement (of covering it timely). The latter was needed due to the fact that TBC wanted to justify their actions against the old management, and to take ownership of the property.
I also want to clarify that throughout the 14 years of Elit-Electronics’ old management there was never any violation of credit terms. Quite the reverse took place when the new management entered the scene, which breached the existing terms, which had never happened during the time of our management despite experiencing war and the global economic recession.
We have filed several lawsuits against them in court and we hope to win. At first I urge the abolishment of my own 5.5 million USD worth of mortgage shares 55% alienation from TBC bank, and then restitution, proven juridical.
Currently the processes aren’t being done in a transparent manner at Elit-Electronics which is not only our concern but also all the company’s creditors. The company which was named by World Bank as one of the most transparent, ought not to have such a fake image.
It would be best if TBC returns the shares which will become the warranty for the company’s future development, and satisfy creditors with a rehabilitation plan. We will not back down from this dispute.
I’d like to take this chance to thank once more our society for the support they have showed us throughout this time. Even TBC Bank employees have supported me in these hard times via phone calls.
TBC Bank’s top management is continuing to send alerting e-mails to its staff to justify their completely inappropriate steps taken against us, but in vain, because they already know what the reality is.
Anzor Qoqoladze – Ex-CEO of Elit-Elecronics
TBC Bank Statement:
“Upon payment of the companies debts TBC Bank shell transfer the shares of Elite Electronics (currently owned by TBC bank) free of any charge”
TBC Bank declares, that Mr. Anzor Qoqoladze (as usual) is deliberately avoiding the payment of the indebtedness, accrued by the company to TBC Bank during his management period and which represents his direct responsibility. We would like to state that upon payment of the companies debts TBC Bank shell transfer the shares of Elite Electronics (currently owned by TBC bank) free of any charge.