The Meeting : Armand Apavou, flight over a volcano - The Point

for a Long time, Armand Apavou was simply referred to as " the Reunion of the richest ", is inviting high in the annual ranking of the French the most affluen

The Meeting : Armand Apavou, flight over a volcano - The Point

for a Long time, Armand Apavou was simply referred to as " the Reunion of the richest ", is inviting high in the annual ranking of the French the most affluent, established by our confreres of Challenges. A "fortune" professional from his small empire local, with ramifications in housing, the real estate business and the hospitality industry. In more than fifty years of activity, he would have accompanied the construction of 25,000 housing units and 150,000 m2 of business premises. Now, try to search his name on this list... Nothing.

Because this self-taught, of humble origin, a native of Sainte-Suzanne, who has long been able to take advantage of the laws of tax exemption in the DOM, has kind of lost everything, since the placement in liquidation of most of the companies of its group, in 2018. But, at the age of 80, he hopes to become a master at it. In his line of sight : the two co-agents* appointed liquidators, in charge of records.

Complaint

according To our information, Armand Apavou filed July 31, 2020 a criminal complaint for "illegal catch of interests" against them. A few weeks earlier, his company EGB had requested their replacement to a judge-a commissioner – a deliberate should be returned by 31 August. It is alleged against the co-executors of the links personal and/or financial that they have, directly or through their lawyers, with stakeholders of the court-ordered liquidation. One of the agents would have had recourse to an insurance broker who would not be other than his brother-in-law, to terminate insurance on buildings of the group Apavou to subscribe to new – from the same company – and thus collect commissions.

according To the agent referred to by the accusations, the situation would be imposed in order to obtain accurate and reliable information, and the need for compliance with the insurance with the actual risks. The national Council of judicial administrators and legal representatives, the representative body of the profession, was also seized by the Authorities. Have been also called on the mp Sylvain Waserman, vice-president of the national Assembly, at the head of a working group on this type of issues, and the magistrate, regional inspector, who control the profession.

41 loans

Armand Apavou does not stop there. On July 13, 2020, he called for the closing of the judicial liquidation of the property BLI. It believes it has the are available sufficient to extinguish the liabilities of said third parties, of € 162 million, with banks, tax authorities, suppliers... and thus enable a release of the current procedure. The mixed tribunal of commerce of Saint-Denis of The Meeting is expected to consider this item, September 2, 2020. The CDC Habitat, a subsidiary of social housing Caisse des depots, the financial arm of the State, has taken over 2 522 units of the company BLI to height of 148.5 million euros, and shops, another company of the group, Batipro, for the sum of $ 8.1 million. It had already paid $ 142 million. The remainder should be paid in the next few weeks. This sum, added to the available cash of the subsidiaries, would be enough to deleverage the group, according to its founder.

The roots of this case date back to the beginnings of years 1980. Encouraged by the State, the group Apavou had built nearly 3 000 homes ILM (building low rent), to finance their construction, in part, by borrowing. Between 1983 and 1995, the Credit foncier of France has advanced more than 150 million euros through 41 regulated loans.

A model that is more sustainable

The first few years, the rate – progressive – ranged from 4 % to 5.1 %, but very soon, they will reach 10.5 per cent, choking off the group's finances. In parallel, the company may not increase at the same rate rents, because those are framed, as these units are intended for a small population. Three times – the last time in 2008, Armand Apavou renegotiate any of the terms of its loans with the French Treasury. In spite of the adjustments granted, the economic model of its business is no longer sustainable : its land BLI plunges into a deep crisis, and with it, all the other activities of the group. Thus, between 2008 and 2017, 80 % of the sales were absorbed by the repayment of loans, complicating the maintenance of the park, which has accelerated its degradation, and consequently caused the dissatisfaction of the tenants, some of whom refused to pay their rent... In 2016-2017, a large part of the companies in réunion of the group were placed into receivership. In 2018, the judicial authorities of Saint-Denis pronounce the judicial liquidation of 34 of them. In contrast, the activities of mauritius in the group Apavou hotel, land, real estate development) remain.

Armand Apavou is also the target of several procedures. In 2019, the co-liquidators have initiated an action against Armand Apavou in bankruptcy, blaming him for an increase in fraudulent liability's now between 2002 and 2016 two of his companies in a structural deficit, pursuing an activity structurally in deficit and by delaying the recognition of the state of cessation of payments. He was acquitted by the tribunal correctionnel of Saint-Denis end of 2019. But an appeal has been lodged. On 19 August, another case should be examined by the justice : the future of the company EGB will be tackled. The public ministry, to the origin of the action, accuses him of having benefited from movements intra-group and wishes to see the judicial liquidation of this corporation because of the financial relationships that have occurred. The coming weeks promise to be very busy for Armand Apavou.

Definition. " and referred to in any collective proceedings, a legal agent is responsible by decision of a court to represent creditors, to preserve the financial rights of the employees and realize the assets of the companies in liquidation for the benefit of creditors. The agent accompanies the head of the company during the entire observation period. (...) When the turnaround of the business appears to be impossible, the agent appointed judicial liquidator shall implement the transfer of the overall company with its employees or the separate sale of its movable and immovable assets and recover the amounts owed by the customers. It distributes the funds among the creditors, thus allowing their recycling in the economic circuit. "Source : CNAJMJ
Updated Date: 16 August 2020, 03:33

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