Mirko Kovats

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Mirko Kovats 2005

Mirko Kovats (born August 3, 1948 in Vienna ) is an Austrian entrepreneur , best known for his role as founder, majority shareholder (indirectly, through his private foundation MUST ) and CEO of the insolvent Austrian company A-Tec Industries .

resume

Private life

Kovats was born in Vienna in 1948 as the son of Hungarian immigrants. He studied commercial science at the University of World Trade and received his doctorate at the age of 23.

Mirko Kovats is considered to be public shy. He is married and has two sons.

Early business (until 1997)

After completing his studies, Kovats initially worked as a machine dealer with the COMECON countries in the 1980s and 1990s .

After the collapse of the Eastern Bloc in 1989, he looked for a new field of employment, developed office and hotel projects and invested in real estate . In the 1990s, Kovats and his partner Franz Mock took part in several discos (including the U4 Club , A2 Südpol in Multiplex-Vösendorf , Tanzpalast-Baden, Nachtwerk-Wien, Dorian Gray- Korneuburg , Miami- Hagenbrunn , events in the Sofiensaal 1998 in Vienna).

The renovation of the First Austrian Gear Factory and the Wiener Brückenbau und Eisenkonstruktions AG were not very successful

Structure of the A-TEC

From the end of the 1990s, Kovats began to build up his A-Tec Industries group . He laid the foundations in 1997 when he acquired 50% of the shares in the Salzburg machine tool factory Emco . Other main pillars of the group followed later: ATB Austria Antriebstechnik , Montanwerke Brixlegg and Austrian Energy & Environment . Kovats continuously expanded its industrial holding company through acquisitions. Most of the time he bought economically troubled companies with a high "turnaround potential" at a reasonable price, and he succeeded in restructuring them and making them profitable within a few years. After all, more than 70 companies with more than 10,000 employees belonged to the group, which achieved a turnover of well over 1 billion euros.

But Kovats was not always unreservedly successful:

  • 2002 failed z. B. a takeover of the Semperit plant from Continental and a takeover of the Wiener Grundig plants.
  • In 2003, Kovat and his partner Ronny Pecik caused a sensation with the purchase of almost 20 percent of the shares in the VA technology industrial group and in 2004 with the profitable but controversial resale of these shares to Siemens AG .
  • In 2005, Kovats took a stake in the Swiss company Unaxis (today: OC Oerlikon) , again with partner Pecik . In early 2006, Kovats retired from the group's board of directors. In return, Pecik got out of A-TEC, apparently because of differences with Kovats.
  • In 2005, he tried the Austrian province of Burgenland to Bank Burgenland abzukaufen. However, the sale was rejected by the state parliament , which demanded an audit by the audit office , whereupon Kovats withdrew his purchase offer and also canceled further planned investments in southern Burgenland and in Spielberg (Styria).
  • In 2007, Kovats fought a takeover battle with the copper manufacturer Norddeutsche Affinerie (NA) for the Belgian Cumerio . A-TEC wanted to take over Cumerio, who refused and preferred NA. Before NA could come into play, however, Kovats blocked the deal by increasing his stake in Cumerio and also getting involved in NA. The stalemate lasted until April 2008.
  • In 2007 Kovats tried to take over the Serbian copper producer RTB Bor .
  • In June 2010, A-Tec wanted to issue a bond, but failed. However, A-TEC did not publish an ad hoc announcement of the failure of the issue. In 2012 the Financial Market Authority imposed a fine of EUR 130,000 on Mirko Kovats and Christian Schmidt.

On October 5, 2010, A-Tec announced in an ad hoc announcement that major orders with a volume of almost one billion were in prospect. Since, in the opinion of the Financial Market Authority, it was already known at the time that the financing was not guaranteed, there was a further fine of EUR 200,000 for Mirko Kovats, Christian Schmid and Franz Fehringer in 2012.

On October 20, 2010, A-Tec announced its bankruptcy. This is the third largest bankruptcy in Austrian economic history.

In July 2011, the Vienna Public Prosecutor's Office carried out a search of the house at A-Tec, as investigations were underway against several board members, including Mirko Kovats, based on a complaint, including fraudulent crime and falsification of accounts.

On November 14, 2012, A-Tec's creditors received a quota of 39 percent. In December 2015, they received a further 4.44 percent.

According to the business magazine "Format", Mirko Kovats and investors want to reposition A-Tec as a holding company for industrial companies after the quota has been paid out. Activities are planned in the areas of oil, gas and copper, among others. He also sees synergies with the K&K Group (obviously referring to K&K Oil and Gas GmbH, which he runs together with Jan Klima). Kovats reaffirmed this intention in January 2013, with the prospect of acquisitions in the original 4 areas. The prerequisite, however, is the resumption of trading in the A-TEC share, about which discussions are being held with the stock exchange. However, the Financial Market Authority (FMA) announced that it had commissioned the Vienna Stock Exchange to investigate the reasons for revoking the admission to trading of A-TEC securities. In February 2014, the FMA revoked A-TEC's listing on the stock exchange.

In January 2013 it became known that the A-TEC should have been withdrawn 600,000 EUR. In an interview with the Wirtschaftsblatt, Mirko Kovats confirmed a lawsuit by the insolvency trustee. A settlement was agreed with CII AG, which belongs to his foundation. A discount and a longer payment period were agreed.

20 shareholders have already joined the criminal proceedings against Mirko Kovats as private parties, more will still do so.

According to a report in News magazine, there were suspicions that Kovats might be involved in a bribery affair in Belgium. A manager of the former A-TEC subsidiary Inova France, who confessed his own fault, allegedly alleged that Kovats approved a € 2 million bribe payment. The Belgian judiciary investigated and requested and received legal assistance from Austria (accounts were opened). Kovats rejected all allegations as untrue.

In 2019 he was acquitted.

Activities outside of A-TEC

In 2012, Kovats and Jan Klima acquired prospecting rights for gold in Sierra Leone.

Kovats and Klima are managing directors and owners of K & K Oil and Gas GmbH Jan Klima is the son of former Austrian Chancellor Viktor Klima .

There are allegations of tax evasion against Mirko Kovats, which he denies. The allegations are, among other things, that he had "used his company network to finance his private property purchases in the Bahamas and thereby obtain tax advantages". Specifically, it is about Capital- und Industrie - Investment AG (CII), a subsidiary of the MUST private foundation, which holds some of the now worthless A-TEC shares, but also has stakes in the Bahamas. It should be about land that should be worth 10 million euros minus debt. The properties in the Caribbean are expected to be sold by 2014.

The following companies were among the holdings of Capital- und Industrie - Investment AG (CII AG):

  • CII Ressources GmbH (Managing Director: Mirko Kovats), founded in October 2008 as A-TEC Central Asia Resources GmbH, originally owned by A-Tec Industries AG and transferred to CII AG in March 2009

In September 2019 CII Ressources GmbH was renamed A-TEC Energy & Environment GmbH .

  • K&K Investment GmbH (indirect; managing directors: Mirko Kovats and Jan Klima) K&K Investment GmbH was owned 50% by CII Resources GmbH and 50% by Jan Klima. This company holds 100% of the shares in K&K Oil and Gas GmbH (indirectly; managing directors: Mirko Kovats and Jan Klima). In 2018, Kovats resigned as managing director and CI I Ressources GmbH also gave up its shares

Furthermore the

K&K Natural Resources GmbH (formerly: I 2 C Investment GmbH; indirect; managing directors: Mirko Kovats and Jan Klima)

Kovats resigned as managing director in 2018.

  • GasOil Technology GmbH (formerly: AEP Education Projects GmbH; indirect; managing directors: Mirko Kovats and Wolfgang Gröger; owners: 46.15% CII Resources GmbH, 53.85% Delos Bauträger GmbH)

Mirko Kovats is also a member of the supervisory board of GasOil Technology as (a Slovak public company with EUR 250,000 share capital), in Poprad , Slovakia . The company engages in engineering in the oil and gas industry. 80% of Gasoil Technology as is owned by Gas Oil Technology Limited, London. Gasoil Technology Limited is in turn owned by Abaco Immobilienverwaltung GmbH. Abaco Immobilienverwaltung GmbH is owned by Ulrike Kovats (99%) and Mirko Kovats (1%).

  • CII Mining Industries AG (Management Board: Emil Vassilev Kotzev and Mag. Franz Fehringer; Supervisory Board: Mirko Kovats [Chairman], Stoyan Staykov Staykov, Freimut Dobretsberger) The company was founded in 2009 and has not disclosed any annual financial statements to date (May 2013), although Section 277 of the Corporate Code provides that this must be done no later than 9 months after the balance sheet date.
    In May 2014 the company was officially deleted from the commercial register due to lack of assets. The legal basis for the deletion was §40 Commercial Register Act.
  • CII Transport Investment GmbH in liquidation (51% belong to CII AG via CII Resources GmbH, 49% to E-TEC Beteiligungsverwaltungs GmbH, a subsidiary of the insolvent A-Tec Industries AG); it entered liquidation in August 2012 and was deleted from the commercial register after its termination in April 2013.

In August 2014, Capital- und Industrie - Investment Aktiengesellschaft was converted into a limited liability company. In February 2016, what was now CII Capital- und Industrie Investment GmbH (renamed in 2015) transferred its stake in CII Ressources GmbH to Delos Bauträger GmbH. Delos Bauträger GmbH is owned by Abaco Immobilienverwaltung GmbH, whose owners are 1% Mirko Kovats and 99% Ulrike Kovats.

Kovats was also managing director of Airo Handelsgesellschaft mbH, which belonged to the private foundation TOSE, which is attributable to him. Airo Hotelbetriebs GmbH, which operated the Airo Tower Hotel in Vienna- Favoriten , belonged to Airo Handelsgesellschaft mbH . Airo Hotelbetriebs GmbH went bankrupt in April 2016. In September 2017, Airo Handelsgesellschaft mbH was deleted from the company register due to lack of assets.

Kovats owns or has owned several properties indirectly through his private foundation TOSE. In March 2013 it was announced that the Artis Hotel am Semmering would be sold to an Austrian-Ukrainian investor group. In June 2014, Novamobil GmbH, which belongs to the foundation, sold an apartment building at Universitätsstrasse 4 in Vienna for 8.3 million euros to the Austrian civil service insurance. In July 2014 the TOSE private foundation sold the Artis-Hotel Wien Rennweg and the Schlosshotel Krumbach for more than 10 million euros to Erich Podstatny's company "EPI". According to an article in the industry magazine, the price shouldn't be too high, so it could be a distress sale. Artis Schlosshotel Krumbach GmbH then went into liquidation in January 2015 and was deleted from the commercial register in 2019.

In 2020, Novamobil GmbH was deleted from the commercial register due to lack of assets.

The above-mentioned Airo Tower Hotel itself belonged indirectly to the TOSE private foundation of Mirko Kovats, but was sold in June 2015 to Kurbadstrasse Projektentwicklungs GmbH, which is owned by the Breiteneder family and Thomas Levinitschnig. The sales price was 10.75 million euros.

The returns from the property sales are said to have largely been used to cover bank debt.

Kovat's private house is leased. The land is owned by Raiffeisen Impuls-My Immobilien GmbH and Abaco Immobilienverwaltung GmbH, which belongs to Kovats and his wife. The private bank of Raiffeisenlandesbank Oberösterreich has liens in the millions.

Speaking to the Independent Administrative Senate (UVS) in April 2013, Kovats said he had no assets, no income and was living on credit. The UVS procedure concerns the penalties imposed by the Financial Market Authority in 2012 for incidents in 2010 (see above)

Acquisition of Cupori

Mirko Kovats acquired the Finnish copper tube producer Cupori in 2014 . The company is one of the largest in its sector in Scandinavia and has a turnover of 100 million euros with 170 employees.

In November 2015, Cupori took over two locations from its competitor KME in France for 6 million euros. The takeover saved 214 of a total of 260 jobs and KME retains a 40% stake in the company taking over. With the complete closure of the sites imminent, the union was in favor of this solution despite Kovat's reputation for A-Tec. The advantage for Cupori from this transaction was that it acquired a copper foundry that the company did not previously have.

Kovats has been registered as Director of Cupori Oy's UK office since April 2015.

Cupori belonged to the Finnish steel group Outokumpu until 2008 .

criticism

Because of his unconventional business practices and financing methods and his sometimes spectacular transactions, Kovats have repeatedly been accused of risky, dishonest or even criminal activities. In the early stages of his business (before 1997), numerous companies in which Kovats had direct or indirect interests went bankrupt.

Kovats has been sued several times under private law. He was also charged twice under criminal law:

  1. In 2000, Kovats was sentenced to six months probation by the Vienna Higher Regional Court for a bankruptcy offense in connection with the “Dorian Gray” nightclub.
  2. In July 2007 the public prosecutor's office in Vienna announced that Mirko Kovat would be charged with fraudulent krida in connection with the bankruptcy of the “A2 Südpol” discotheque . If convicted, he could face imprisonment as a repeat offender. The process began on September 17, 2007. The allegations were that Kovats and co-defendants had deliberately caused bankruptcy by not charging the operating company rent and operating costs. However, the proceedings were terminated. According to the expert Keppert, the court report was incorrect and the non-settlement was therefore due to the fact that the claims could not be collected.

Small investors accused Kovats that his business conduct was damaging the reputation of A-TEC and had a massive negative impact on the share price. They asked for more transparency. The A-TEC share was issued in December 2006 for 100 euros (after a share split, this issue price would correspond to a value of 25 euros per share) and reached an all-time low of 1.85 euros in October 2010 after the bankruptcy became known.

After the restructuring and takeover failed by new investors, the share fell to 84 cents in October 2011. "The experienced bankrupt with over 30 bankruptcies" is not aware of any guilt and sees the blame for the bankruptcy and the failure of the restructuring with others.

The documentary Let's Make Money by Erwin Wagenhofer , published in 2008, shows him making highly controversial statements about the working conditions in his Indian factories.

Works

Web links

Individual evidence

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  3. Manager Magazin from April 15, 2008
  4. Börse Express
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