Forteam Investments Ltd. seizes Bio Family Food Stores and Additional 29% of Czerwona Torebka Shares Belonging to CEO Mateusz Świtalski

WARSAW, Poland, May 14, 2021 /PRNewswire/ -- Today, Forteam Investments Ltd., an investment company controlled by American private equity firm Delta Capital Partners Management LLC, announced it has obtained another injunction from the Poznań Regional Court with respect to its legal claims against Polish businessman Mariusz Świtalski. Forteam is seeking payment of over EUR 65 million from Świtalski and companies controlled by him in connection with a guarantee executed by Świtalski for the benefit of Foreteam. The Court has also seized the assets of two of Świtalski's children, Mateusz and Natasza.

The Court's order also enables Forteam to seize the shares of Czerwona Torebka belonging to Mateusz Świtalski, who serves as CEO of the WSE-listed company. Specifically, pursuant to the order, Forteam can seize an additional 21,786,991 shares, constituting 29.04% of the share capital of Czerwona Torebka. In total, along with shares attached under previous injunctions and related Court orders, Forteam has seized approximately 65% of the company's shares and can therefore now exercise certain voting rights in connection therewith.

The Court order also applies to all shares in Bio Family, a Polish chain of supermarkets belonging to Mateusz Świtalski that offers organic food, cosmetics, and cleaning products.

The Court also attached all of Natasza Świtalska's shares in the clothing firm Farasi Fashion and Mateusz Świtalski's shares in the Ogrodowa 12 conference centre in Poznań.

Lastly, the Court-ordered relief concerns the prior trading of investment certificates in Świtalski FIZ. Natasza and Mateusz's certificates were secured by Court injunction in April 2020. Despite this measure, Natasza and Mateusz divested their certificates. As a result, Forteam is demanding damages from Mateusz and Natasza and the now obtained injunction serves as compensation for the younger Świtalskis' unlawful actions. The injunction also ensures that any person transferring the Świtalski FIZ certificates previously held by Mariusz Świtalski must expect to pay damages for hindering Forteam's enforcement of the certificates.

Christopher DeLise, Delta's Founder, CEO and Co-CIO, stated, "We have observed how Mariusz Świtalski has sought to avoid liability and payments owed to Forteam by transferring assets to his children and engaging in other conduct designed to shield his assets. Notwithstanding his attempts to shield his assets, our swift and decisive action has once again prevented his attempt to mislead and dissuade us from enforcing our rights and compensation receiving for harm his actions have caused."

This interim relief was obtained in anticipation of a ruling in the ongoing civil proceeding against Mariusz Świtalski connected to his alleged breach of a guarantee agreement concluded with Forteam Investments in 2015.

Prior Actions Undertaken by Forteam

On May 8, 2015, Forteam purchased a 100% stake in Małpka S.A. from Czerwona Torebka. Małpka was the owner of the Małpka Express chain. In settling the transaction, Forteam sold its 16.18% stake in Czerwona Torebka. Upon signing the sale agreement, the parties were aware of Małpka's difficult situation. The agreement itself noted that the parties realize that further considerable financing would be needed for the company to reach the break-even point.

Because of this, Mariusz Świtalski and Sowiniec Group also executed a Guarantee Agreement with Forteam, which provided Forteam with a guaranteed return on the Małpka investment if the Małpka Express store chain was later sold to a third-party. Concurrently, Mariusz Świtalski submitted a written declaration that his personal assets were sufficient for him to fully discharge his obligations under the Guarantee Agreement.

When Forteam attempted to sell Małpka Express in 2018, it was unable to obtain consideration at or above the minimum sale price despite engaging a respected independent investment bank to run a robust sales process. Mariusz Świtalski did not exercise his preemptive rights to buy Małpka at that time for the guaranteed amount.

Accordingly, Forteam notified Świtalski on December 28, 2018 of his obligation to remit the monies owed to Forteam pursuant to the Guarantee Agreement. Notwithstanding, Świtalski and the companies have failed to pay any amounts due and owed to Forteam, which, in turn, necessitated the filing of the injunction and civil lawsuits. As a result of Mariusz Świtalski's actions, Forteam was forced to take additional steps to secure part of his children's property and other entities to which Świtalski transferred assets that he owned.

It is also worth recalling that the Public Prosecutor's Office is currently investigating actions to the detriment of Forteam in connection with events accompanying the fund's acquisition of the Małpka chain of shops in 2015. The Prosecutor's Office is investigating the possibility of a wider group of companies and individuals committing at least three acts: fraud, deliberate failure to satisfy Forteam's claims and money laundering.

For additional information, please contact:

Anna Krajewska
[email protected]  
tel. +48 505 004 620

Marek Czarski
[email protected]  
tel. 509 162 734

SOURCE Delta Capital Partners