Wasendorf, in detention for 50 years due to $215 million fraud, according to Wall Street Journal owns a minor participation of 30% in Avrig 35, a company that was part of the companies financed by Wasendorf with the funds of $215.5 million, stolen from its Peregrine Financial Group brokerage house clients.
The valuators designated by the court estimate the value to be recovered by Wasendorf’s clients and creditors to $190 million.
Eidelman has declared that the share in Avrig 35 is the last asset in Wasebdorf property that could be capitalized. He refused to disclose the identity of the investors interested in the shares and the values in discussion.
According to the documents released by the liquidator to the court, Avrig 35 situation was hard to evaluate, due to the “apparent insolvency” of the group, of the investors’ litigations and of the difficult economic conditions in Romania, writes WSJ.
Eidelman estimated that Avrig owns partially or entirely 32 assets. The group was founded in 1999, with Wasendorf one of the initial partners. The group has grown rapidly through project development in Eastern Europe, attracting the tenants and then selling the properties. IN 2007, a bank has evaluated the group to EUR 800 million, on the background of a possible Stock listing of the company.
After the crash of the Romanian real estate market a lot of investment vehicles owned partially or entirely by Avrig 35 has become insolvent. The creditors sued the group and litigations between investors appeared, according to documents.
Avrig 35 was founded in 1999 by four American investors - Russell Wasendorf, Alexander Hergan, Mark Proskine and a former broker. Apart from real estate projects, the group is also involved in other activities, such as asset management, constructions, architecture and retail. Among the emblematic projects developed by Avrig 35, there are Charles de Gaule Plaza and Tower Center on the office segment and the commercial centres Iris Shopping Center in Bucharest and in Piteşti. (source: zf.ro)