Swiss court green-lights Bertschmann vs. Valvis trial on sale of Romanian businesses

A Geneva court is set to prosecute Romanian businessman Jean Valvis (in picture), at the request of the heirs of his business partner, Swiss multi-millionaire Hans Bertschmann. The Swiss businessman's heirs have submitted a complaint to the court alleging abuse, breach of trust and fraudulent management against Jean Valvis. Their claim covers the sale of Valvis' business LaDorna to Coca-Cola and Lactalis and the set up of his new business, Aqua Carpatica, with money from the previous sale. They argue that Bertschmann didn't receive a fair share of the sale proceeds after being duped by Valvis into thinking the company was under performing. The trial in Geneva is set to start towards the end of 2013 or the beginning of 2014, according to Hammond Bogaru & Associates, the law firm which represents the interests in Romania of Caroline Bertchmann, the daughter of the Swiss investor who died in 2008. The Swiss firm Ador & Associés also represents the Bertschmann heirs. Vavis, of Greek descent, met Bertchmann in 1992 through his daughter Caroline. Valvis and Bertchmann teamed up to create several businesses, including those in Romania, with funding coming from the Swiss investor. One of the first businesses was the takeover of mineral water bottling company Dorna Apermin, which was the setting stone for the group. Valvis and Bertchmann had a 50/50 stake in the company. In 1996, a 20 percent package in Dorna Apermin was sold to an investment fund run by Societe Generale for some EUR 7.2 million, and some of the money were used to create LaDorna the dairy company. Later in 2002, Dorna Apermin was sold to Coca-Cola, for some USD 39 million. According to his lawyers, Bertchmann only received USD 4.5 million out of this deal, even if he was entitled to get some USD 12 million based on his stake in the firm. According to Romanian media, Valvis signed under his own name a non-competing agreement with Coca-Cola, which brought him USD 10 million out of the sale price. This cash helped create Valvis' current business, Aqua Carpatica. Later in 2008, Valvis also sold LaDorna to Lactalis. Initially the two partners had equal shares in the business, but later on the Swiss multi-millionaire ended up with a lower stake after not taking part in share capital increases. Eventually he exited for some CHF 1 million by selling Valvis his stake. Bertchmann's heirs are however saying Valvis presented a distorted situation of the company, presenting it as almost bankrupt in 2007, only to successfully sell it in 2008 to Lactalis. The heirs are also saying Bertchmann suffered from Parkinson when he signed off the LaDorna business to Valvis, allegedly with long memory losses. The heirs are currently asking for a fair percentage from the sale of LaDorna, said to have reached some USD 70 million. editor@romania-insider.com