Attorney Roderich Schaetze: Thai Courts Deal elumeo SE Group a Heavy Blow - Workers Have the Right to Enter the PWK Premises, and Confiscate Assets - Operator of Juwelo TV in the Midst of a Violent Storm of Legal Disputes

Last year, in December 2018, elumeo's management ordered the "solvent liquidation" of PWK Jewelry Company, without paying anything from its debt of more than 30 Million Euro for jewelry manufactured with bank loans in Thailand and exported to Germany. Furthermore, elumeo's management, instead of providing a coherent plan for liquidation to the PWK Management, demanded that PWK Directors should come up with a solution to the financial havoc created by the management of elumeo SE. They asked them to pay the salaries and creditors with supposedly "readily accessible liquidity" consisting among other things in company assets such as buildings which are under the mortgage from Siam Commercial Bank (Thailand), a VAT refund expected in several years' time or a remaining stock of unused leftover gems (most of them also unpaid to the suppliers).

Last year, in December 2018, elumeo's management ordered the "solvent liquidation" of PWK Jewelry Company, without paying anything from its debt of more than 30 Million Euro for jewelry manufactured with bank loans in Thailand and exported to Germany. Furthermore, elumeo's management, instead of providing a coherent plan for liquidation to the PWK Management, demanded that PWK Directors should come up with a solution to the financial havoc created by the management of elumeo SE. They asked them to pay the salaries and creditors with supposedly "readily accessible liquidity" consisting among other things in company assets such as buildings which are under the mortgage from Siam Commercial Bank (Thailand), a VAT refund expected in several years' time or a remaining stock of unused leftover gems (most of them also unpaid to the suppliers).

This incapacity of elumeo to provide any solution to the huge financial gap created by them, led the unpaid workers of the PWK factory to seek their rights in Thai courts. On September 12, 2019, under Case No. Ror 757/2662, they were granted by the Thai Labour Court of Region 2 a Writ of Execution, appointing 488 former employees of PWK as the "execution officer to confiscate and sequestrate the assets of the Debtor", giving them the right to immediately enter the PWK premises, identify any and all assets and confiscate them to be sold at public auction.

This is an enormous blow to the elumeo group, because, together with the special requisition order already issued by the Thai government against PWK's land and building this will make any controlled sale of the company assets impossible, placing the company on an unstoppable and uncontrollable downfall, which could possibly lead to the insolvency of PWK or even of elumeo group. On the same time, one by one, PWK unpaid suppliers started to sue, led by the big diamond supplier Flawless and followed by the Thai supplier Bright Future. Many other suppliers, including the logistics and security international G4S company are not yet paid either.

In view of these last developments, elumeo groups major shareholder Ottoman Strategy Holdings (OSH is, again, demanding the immediate appointment of a special auditor to the group, in order to clarify the activities of the criminally investigated management led by Chairman Boye and executive directors Tomas Jarmuske and Bernd Fischer. The reluctance of other shareholders, especially Frankfurt Performance Management AG (FPM), represented by Raik Hoffmann, to agree to such an audit, while declare their support for a criminally investigated Chairman at elumeo's Shareholder Meeting is hard to comprehend for shareholders who are in favor of a special auditor.

- Picture is available at epa european pressphoto agency (https://www.epa.eu) -

Contact:
Rechtsanwalt Roderich Schaetze
SWM Treuhand AG
Schäfflerstraße 8, 80333 München
Phone: +49-89-2040026-20
e-mail: [email protected]