Empreno: transaction with Vivacom is null and void

Empreno Ventures Ltd. (“Empreno”), a former legitimate owner of 76.6% interest in the holding company owning Bulgarian Telecom Company EAD (BTC) known as Vivacom, confirms completion of the sale of pledged 100% shares of InterV Investment S.a.r.l. (“InterV”), a Luxembourg holding company of the telecom operator, by VTB Capital Plc.  The completion of the sale is nothing but the next step in implementation of a fraudulent scheme orchestrated by VTB Capital Plc and a group of its top managers implementing a hostile takeover of Vivacom via sale of InterV shares significantly under fair value at a purported auction to a predetermined purchaser.  The transaction is null and void.  The purchaser Viva Telecom (Luxembourg) SA is not a legitimate good faith buyer of Vivacom. The title to the shares so “purchased” is clearly defective.

Empreno reminds that the transaction is challenged by Empreno in High Court of Justice in London, England.  The claim was brought against Viva Telecom (Luxembourg) SA, VTB Capital Plc, Mr. Milen Veltchev, Mr. Spas Rusev, Delta Capital and others. The relief sought in these ongoing proceedings includes the return of the shares and indemnification of damages. 


Extending a new €240-mln loan on 30 August 2016 proves that all previous representations of the bank that its only goal with respect to Vivacom transaction was to recover its earlier €150-mln bridge loan provided in 2013 were false to cover the real intentions of the bank to raid the company.  So called “open, competitive auction” was conducted with various significant violations and in a non-transparent manner, disregarding Empreno’s refinancing offer.  VTB Capital Plc acted in various conflicting capacities (creditor, pledgee, seller, buyer, bondholders consent solicitation agent and financier of the buyer) at the same time.  Bulgarian managers of VTB (Milen Velchev) who was in charge of the transaction and represented VTB in Vivacom structure board became a shareholder of Viva Telecom (Luxembourg) SA. It is only because of Empreno's actions and investigations that it was revealed that VTB were acquiring an equity stake, are funding the acquisition for the consortium, and was it not for the actions of Empreno all of these facts would never have been revealed. Empreno is confident that the litigation trial will reveal all the steps of the illicit conspiracy.

Empreno intends to continue the proceedings in the English court and other relevant jurisdictions as well as its ICC arbitration.