FRANC VILA gives an official response to the information recently published in some media
Press release, 6 May 2009
Due to the inexact and defamatory information recently appeared about FRANC VILA S.A. and other companies of the Franc Vila group we would like to inform objectively and exactly about the real situation.
The reason why we have kept silence is that we didn't want to interfere in the legal procedure we already initiated against Mr. Arsinovitch. Now we are obliged by the circumstances to put light on the following facts:
Mr. Arsinovitch contemplated in 2007 the acquisition of a minority shareholding in CHRONOS HOLDING (Franc Vila S.A. mother company) through a special purpose vehicle. Both parts were in fact in a negotiation process of terms and conditions. However, as the negotiations never arrived to an agreement point such a sale never occurred.
The money paid in advance at the time to the majority shareholder company was converted into a loan to the latter agreed by both parties and fully regulated by contract. In this way the debt belonged to the majority shareholder company of CHRONOS HOLDING and not directly or indirectly to Franc Vila S.A., which does not owe any money to Mr. Arsinovitch or any of his companies, as is certified by the auditors of Franc Vila S.A. in the attached documentation. Therefore, the loan does not compromise Franc Vila S.A. operations in any way or create any obligation for Franc Vila S.A.
The structure of the Franc Vila group of companies is absolutely legal. All of them are based in Switzerland or the European Union and follow all rules and regulations that might apply in their respective countries. The structure is composed by an Austrian holding as the mother company and two daughter companies: a trademark company based in Cyprus and a production company based in Geneva, Franc VilaS.A. All of them pay their respective taxes following the taxes regulation of each country. This structure was created before Mr. Arsinovitch showed interest in becoming shareholder and was known to him from the beginning.
Neither Mr. Arsinovitch, nor any of his companies have ever been distributors of Franc Vila S.A. He has merely sold Franc Vila watches which he bought from the company from time to time mainly for final customers residents in Russia, where Franc Vila S.A. did not have distribution at that moment. At that time Mr. Arsinovitch full activities were not known by the Franc Vila group. Due to these activities Mr. Arsinovitch has been described recently in the medias as "the king of grey market". This element, unknown in the beginning, caused worries and problems among Franc Vila S.A. commercial partners and thus prevented any further cooperation with him.
It has been almost one year and a half since Mr. Arsinovitch has no longer been a client of Franc Vila S.A. He may therefore not claim being a client of the company. He may also not pretend being either a shareholder or distributor of Franc Vila S.A. He has no authority whatsoever to represent Franc Vila A S.A. or to present himself as a partner, officer or employee of Franc Vila S.A. or any company of the Franc Vila group, in spite of what he has said or pretended.
Franc Vila S.A. has been extremely successful since its beginnings. This success has continued even this year in spite of the global economic situation, with excellent results in Baselworld 2009 with the introduction of seven new models, including the first evolution of the characteristic watchcase. Franc Vila S.A. is a healthy Swiss company which has never registered losses.
Franc Vila S.A. has started a legal procedure against Mr. Arsinovitch to prevent him from making defamatory statements against Franc Vila S.A. or its officers. Franc Vila S.A. will not comment on this procedure while the case is pending. Franc Vila S.A. trusts in the Swiss justice institutions and will submit to them to protect its rights and prestige.
