Cash Flow fund lied about Prima Charter airline

opublikowano: 2007-10-24 17:22

Warsaw (Puls Biznesu) - Low-cost airline Prima Charter is in turbulence. The company said it would have PLN 20 million of net income this year, while TFI Opera fund and investor Krzysztof Moska would buy stakes of Prima Charter. Why did Cash Flow, the company restructuring Prima Charter, forget to tell the market that the company generates losses, the fund withdrew and Krzysztof Moska is no longer member of the supervisory board?

In March 2007, Cash Flow said that Prima Charter would increase its capital from PLN 50m (EUR 13.7m) to PLN 70m. Cash Flow was supposed to acquire a stake worth PLN 1.5m. However, the capital amounts to 40m. Cash Flow failed to pay for its stake.
The forecasts for the years 2007-09 provided for increase of sales to PLN 228m, PLN 420m and PLN 600m respectively while net income was supposed to grow to PLN 20m, PLN 36m and PLN 48m. At the end of 2007 and beginning of 2008, Prima Charter planned an IPO on the Warsaw Stock Exchange. Meanwhile, the company is still a limited liability one while it takes 12 months to transform into joint stock company. In the January-September period, it had PLN 103.2m of sales and PLN 14.2m of net loss.
“Prima Charter management has not told us that the forecasts were changed. We don’t have quarterly financial reports from the company”, Tomasz Halabowski, Cash Flow spokesman said.

“Mr. Grzegorz Gniady comes to Prima Charter once a week. This is my answer”, Krzysztof Szymanski, Prima Charter member of the board said.

Grzegorz Gniady is Prima Charter’s chairman and Cash Flow’s deputy CEO.
 
Cash Flow said in March that TFI Opera investment fund would become Prima Charter’s shareholder. The fund was supposed to be joined by well-known investor Krzysztof Moska. TFI is not shareholder of the company. Krzysztof Moska resigned from the membership in Prima Charter’s supervisory board in May.

“I gave up because I’m fair and I’m not going to give my name to certain businesses”, the investor told “PB”.

(PLN 1 = EUR 0.273)