12. 08. 10. - 13:00

Meinl hit by €2.1bn damages claim

Businessman Julius Meinl V. and fellow decision-makers of the family’s business empire have been confronted with a multi-billion claim for damages.

Real estate company Atrium, formerly Meinl European Land (MEL), launched the 2.1-billion-Euro bid at London’s High Court of Justice yesterday (Weds). It is the highest sum ever demanded in court from an Austrian firm.

MEL was founded by Meinl Bank and registered at the Vienna Stock Exchange (WBAG) in 2008. Bettina Knötzl, a lawyer for Atrium, explained today the company demanded compensation for "losses and damages" suffered in controversial business operations.

Knötzl branded Julius Meinl V. – who has a British and an Austrian passport – as the "mastermind of the malversations". She claimed several e-mails would confirm her claims.

Thomas Huemer, a spokesman for Meinl Bank, labelled the legal action as "absurd and populist" today, adding it "has a blackmail character".

The 80-page document presented to London judges by Atrium describes MEL as victim of embezzlement, fraud and market manipulation.

Atrium explained the 2.1 billion Euro bid was based on losses suffered in controversial capital increases and share buybacks.

Julius Meinl V. – one of the richest Austrians with an estimated fortune of 800 million Euros – is the great-grandchild of Julius Meinl I who established the famous Meinl coffee and foodstuff factory in 1862.

He was freed from custody after one and a half days in March 2009 thanks to a 100-million-Euro bailout.

Meinl was arrested over fraud accusations as MEL advertised its investment certificates as safe and of low risk in 2007 – before its shares tumbled shortly afterwards.

The Vienna criminal court said recently it will not repay the record bailout as investigations continue.