Businessman Fathi Taher, whose name is linked to the construction of the five-star JW Marriott Hotel in Bucharest, says he is against Societatea Companiilor Hoteliere Grand (GHES), the hotel owner, contracting a 111 million-euro loan from the Austrian Erste Group.
“We do not agree to reschedule the old debt and pay another 40-50 million euros in interest for the next 15 years,” Taher told ZIARUL FINANCIAR. He added that the Marriott Hotel was making a 20 million-euro profit per year, which could be used to pay the debt it still had with banks. According to the latest information available, GHES still owes some 80 million euros to banks, as a result of a loan taken out in mid ?”90s, to build the hotel.
GHES is controlled by Bauholding Strabag (55%) Austria, ONT Carpati (30%) and Alliance Overseas (15%).
Fathi Taher has been rumoured to be in control of Alliance Overseas for a very long time, as he had avoided stating clearly what his connection with the company was. “Alliance Overseas is a subsidiary of Taher Investment Grup. Therefore I control Alliance Overseas,” the businessman says. Moreover, Taher says he also controls 20% of Strabag”s interest in the GHES, which would put his ownership in Marriott at 35%.
“I had a private contract signed between another company of mine and Strabag, where I decided Strabag”s name will be publicly used, because banks would not lend that much money to a company controlled by an offshore investor,” he says. Taher did not reveal the name of the company involved in this deal. Moreover, he says, the contract has existed since Strabag”s involvement in the Marriott business.
Strabag, on the other hand, says, “Mr. Taher does not own 20% of Strabag”s shares. That is incorrect. Furthermore, there have been several judicial cases in which Mr. Taher has lost in court. The other shareholders are getting the impression that Mr. Taher wants to avoid the refinancing of the project, although this would tremendously increase the economic situation of the project. Therefore we welcome if Mr. Taher is willing to invest 10 million into the project.”
In May, the General Meeting of GHES shareholders voted 85% in favour of taking out the loan, which means it had the support of Strabag and ONT Carpati. The bank contracted is Erste Bank, the same that led the syndicate of banks, which granted the first loan.
The members of the GHES board of directors are now Emilios Thoma (chairman), Michalis Neofytou (ONT Carpati), Robert Pischler (Bauholding Strabag), Nicolae Trandafir and Ion Stan (Alliance Overseas). Taher said he was also planning to replace the members of GHES” Board.
“I want to try and have the entire board replaced because of the proposition they made about the loan,” Taher says. He was the chairman of the board until mid last year.
According to information in the Official Gazette of Romania, #1661/30.05.2006, votes representing 85% of the share capital of GHES turned down the proposition of the Alliance Overseas representatives: “the board of directors is comprised of five to seven members. Each partner is entitled to at least one seat in the board of directors for which it will appoint a representative.” Taher added he did not agree with shareholders getting dividends until the company repaid its entire debt. ONT Carpati officials did not comment on Taher”s statements.