LANGBAR INTERNATIONAL - The position, October
2005 - June 2006
26 JUNE 2006
Edwin Coe, a firm of London solicitors acting for the Langbar Action Group has
agreed to act for Langbar investors in relation to the proposed Scheme of Arrangement.
Edwin Coe's details can be found under the Investor Relations section.
19 JUNE 2006
In the High Court on 16 June 2006 Langbar applied for leave to convene
a meeting on 25 July 2006 of certain creditors of Langbar referred
to as ‘Scheme Creditors’. Scheme Creditors are principally
investors who are holders of Langbar’s Common Shares or Depositary
Instruments who have or may have claims against (1) Langbar and
(2) certain persons formerly associated with Langbar such as certain
founder shareholders and former directors. The purpose of the meeting
is to vote on and approve a proposal for a scheme of arrangement
under section 425 of the Companies Act 1985 (the “Scheme”)
between Langbar and its Scheme Creditors. The proposed Scheme is
important for the future direction of Langbar. The Court adjourned
the hearing to 4 July 2006 to enable a letter concerning the proposed
Scheme (the “Practice Statement Letter”) to be sent
to Scheme Creditors and draft documents relating to the proposed
Scheme to be posted on Langbar’s website. You will find the
Practice Statement Letter and these draft documents under the section
of this website entitled ‘Investor Relations’. Please
read the Practice Statement Letter dated 19 June 2006 carefully.
It gives a summary of what the Scheme entails and why it is being
proposed. In particular, please read the section headed “THE
ACTION YOU SHOULD NOW TAKE”.
A draft of the Scheme itself can be found at pages
41 to 52 of the draft document entitled ‘Scheme of Arrangement – Explanatory
Statement’. This is preceded in the same draft document by
a statement, known as an explanatory statement, explaining the effects
of the Scheme. This can be found at pages 5 to 40.
The Form of Proxy and Claim Form displayed on the website
are also draft documents and should not be completed at this time.
Final versions of these documents will be sent to Scheme Creditors
by post, along with the final version of the Scheme Document, once
the Court has made an order convening the meeting of Scheme Creditors.
Please note that not all investors in Langbar will
be entitled to vote on the Scheme, including those whose investments
are held by a nominee (where only the nominee will be entitled to
vote). The Practice Statement Letter has been sent to all Scheme
Creditors by post. If you have not received the Practice Statement
Letter by post you may not be a Scheme Creditor (as defined in the
You should contact Langbar as set out in the Contact
Details section of the Practice Statement Letter or your broker or
other financial adviser without delay if you are in any doubt as
to what you should do.
14 JUNE 2006 - In the High
Court today Langbar was successful in its application to have Mr
Regli committed in absentia to Pentonville prison for a period of
6 months for contempt of Court by failing to comply with each of
his obligations under the Freezing Order dated 24 February 2006.
Mr Regli is currently believed to be inSwitzerland. Mr Justice Kitchin
commented that a sentence of 6 months was entirely appropriate (indeed
at the lower end of the scale) given the seriousness of Mr Regli's
non-compliance.The Judge also agreed to the Company's request that
a similar application for committal against Mr Arad be adjourned
for a period of 28 days.
12 JUNE 2006 - An application
made by the Rybak Defendants (Mr Rybak, CMC Crown Management Corporation,
Izabela Rybak and SCI Atol) to delay service of their defences until
28 days after their application for summary judgement and/or to strike
out part of Langbar's claim failed. The Court ordered that
the defences be filed by the end of July 2006. Permission to
appeal this decision was refused. The hearing in relation to the
application for summary judgement/strike out is likely to be heard
in October 2006.
27 APRIL 2006 - As a result
of work undertaken, the level of the worldwide asset freezing injunction
granted by the High Court on 24 February 2006 was increased on 3
April 2006, so far as it relates to Mr Mariusz Rybak, from £29
million to €49.5 million. The claim issued on 28 February 2006
has also been extended to include a claim for certain declarations
against Mr Rybak's wife, Izabela Rybak, and a company incorporated
in Monaco, SCI Atol. The Company has also made a criminal complaint
against certain of the Defendants in Switzerland.
12 APRIL 2006 - Pursuant
to AIM Rule 41, which states that the Exchange will cancel the admission
of AIM securities when they have been suspended from trading for
6 months, the admission of the Company’s shares to AIM was
13 MARCH 2006 -
Proceedings commenced in the English High Court against two former
Directors of the Company, Mr Mariusz Rybak and Mr Jean Pierre Regli,
and also against: Mr Abraham Arad Hochman, Lambert Financial Investments
Limited and CMC Crown Management Corporation Limited. The claims are
supported by a worldwide asset freezing injunction which was made by
the High Court on 24 February 2006 and served upon the defendants on
7 March 2006.
14 FEBRUARY 2006 - On February
14, an informal meeting of shareholders was held at the Connaught
Rooms in London. David Buchler made a statement updating shareholders
on the current position, followed by statements from Robin Spencer
of Lovells, the Company's legal advisers and Sion Richards of Jones
Day, who are managing the legal investigation. These were followed
by an extensive Question and Answer session enabling shareholders
to express their concerns. Copies of all statements are available
on the Investor Relations page of this web site.
JANUARY 2006 - The new
board is currently co-operating with the appropriate authorities
to determine exactly what has transpired and pursue the recovery
of the Company's funds. All announcements regarding the progress
of these enquiries will be released through the London Stock Exchange
Regulated News Service and will be held on the Investor Relations
page of this web site.
DECEMBER 2005 - The board
announce the appointment of turnaround and recovery specialist David
Buchler as Chairman of Langbar and the appointment of Christopher
Wallis as new Financial Director. Stuart Pearson remains as Executive
NOVEMBER 2005 - Kroll concludes
that it cannot verify the existence of cash balances of £365
million stated in the company's balance sheet. Kroll reports to
the Board that, following its initial investigations, it appeared
likely that the Company has been subject to a serious fraud affecting
the relevant assets. The Board informs the police and other relevant
authorities of the circumstances and intends to co-operate to the
fullest extent practicable in the pursuit of those responsible for
the events which appear to have occurred.
OCTOBER 2005 - Following the suspension
of trading in common shares listed on AIM, the company appointed
Kroll Associates UK Limited to undertake verification of the Company's
cash deposits with Banco do Brasil and ABN Amro BV.