Egypt's current account gap narrows, but overall BoP records deficit    Egypt's PM reviews debt reduction strategy, eyes more private investment    Egypt hosts international neurosurgery conference to drive medical innovation    Egypt, India discuss expanding industrial, investment partnerships    World Bank proposes Egypt join new global health initiative    Egypt's EDA discusses Johnson & Johnson's plans to expand investment in local pharmaceutical sector    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Egypt welcomes 25-nation statement urging end to Gaza war    Egypt, Senegal sign pharma MoU to unify regulatory standards    Egyptian pound ticks down in early Tuesday trading    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt exports 175K tons of food in one week    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



'We will avoid the previous owners mistakes,' says advisor to new Omar Effendi owner
Published in Ahram Online on 25 - 01 - 2011

After acquiring an 85 per cent stake in the indebted Omar Effendi chain, questions emerge for new owner Aglan. Ahram Online crosses interviews with both new and old owners' legal advisors
After selling an 85 per cent stake in the heavily indebted Omar Effendi chain to Egyptian investor Yassin Aglan, the previous owner, Saudi Anwal United Trading Company, said the old administration will not fulfill its commitments to the chain's staff starting February.
Questions have emerged regarding the fate of the workers, debt payment, and the approval of the government, which holds a ten per cent stake in the company.
“Employees should not worry, we will cover salaries until the end of January,” Ahmed Nasr, a legal advisor to Anwal United, told Ahram Online.
"We have already paid them their December salary. After January their fate will be in the hands of the new owner,” he added.
A month after a failed attempt to sell Omar Effendi to the Arab Investment Development Company (AID), Yassin Aglan, chairman of the Misr Food Company, stepped in offering to buy the chain from the Saudi owner, which drowned it in financial distress. The offer was LE220m($37.9m) – less than half the price Anwal paid the government back in 2006, when it took over the privatized department stores.
The government was surprised to learn about the Aglan-Anwal transaction. “We knew (about the deal) from the newspapers,” the chairman of the public holding company which owns 10 per cent of Anwal, said just four days ago.
“I don't worry about the National Company of Construction and Development (the public holding company) because it only owns ten per cent in Omar Effendi,” said Nasr.
The government had previously welcomed AID's offer to buy Omar Effendi, but the transaction failed after the buyer completed the due diligence process.
“We learned from AID's mistakes,” Tarek Abdel Aziz, legal advisor to Aglan, told Ahram Online by phone.
“Now we are liable for our employees, there will be no lay-offs,” he says, adding that “wages will rise,” too.
The administration board of the new owner El-Aseel, Aglan's company, plans to expand, opening new branches and adding jobs.
“We made a better economic evaluation of the chain, we avoided the previous offer's mistakes, raising the probability of success,” Abdel Azis said.
The new owner will assume financial obligations, including bank loans and dues owed to suppliers and workers, and tax arrears worth LE635m ($109m).
Last December, a bankruptcy petition was been filed against the iconic chain because of its inability to pay a LE100,000 bill ($17,249), rendered for an order made with a small furniture company, a source said.
The bankruptcy petition is the third crisis the company has faced in less than one month.
Just one week earlier, workers in the stores led a successful strike, urging the administration to pay their salaries. And two weeks before that, AID's acquisition of Omar Effendi fell apart after the Tax Authority seized control of the company's bank accounts in order to collect some LE98m ($17.5m) in unpaid taxes owed since 2007, when the store was privatized.
Omar Effendi was a public 'underdog' chain until 2006, when it was sold to Saudi Anwal.The company has only seen losses since and is still heavily in debt.


Clic here to read the story from its source.