Saturday , July 31 2021

Frank Stronach's businesses have lost $ 800 million, Belinda said in a lawsuit

Austro-Canadian billionaire Frank Stronah awaits the launch of a TV debate after national elections in Vienna, Austria, September 29, 2013

Kerstin Joenson

It is supposed that the industrialist Frank Rostahn has lost $ 800 million from several misinformation, and Belinda's daughter, Stranahah, must prevent the 86-year-old from regaining control over the business he has built all his life.

In the final two-year battle for control of her family status, which amounted to $ 1.6 billion eight years ago, Ms. Stronah claimed in court that the founder of the car parts company Magna International Inc. entrepreneurial touch. She said that after cutting off the relationship with Magna in 2011 and selling her share of business, her father ruled a series of losing businesses, including a cattle ranch, electric bikes, pumpkin oil business, and a golf course in Florida. The investment amounts to $ 846 million and includes $ 55 million for two massive bronze and steel sculptures of the winged Pegasus, one of which is on Florida's Stranah track, and the second is still in China.

Ms. Stronah, the chairman and chairman of the family-owned holding company, Stronah Group, and former federal minister and chief executive of Magna, also claimed her father had tapped family money for $ 135 million in personal expenses, including $ 51 million in a short term . for president in his native Austria, $ 50 million to pay taxes in Austria and Canada and 7.9 million for art and a new home in Florida. In a court document, Mrs. Strawnah said: "Frank's unforeseen costs and unregulated business decisions have reduced family net worth to $ 580 million. (or ~ $ 800 million). "

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Judicial acts come in response to a lawsuit launched last October by Mr Stronach and his wife, Elfriede, against their daughter, her two elderly children and her ally, former Stronach Group Executive Director Alon Osip. The couple blames their daughter for having a bad deal with the family's affairs and spending herself on herself. They asked the Ontario High Court for $ 520m in compensation and demanded that Mr Strowach's family business be returned to control, which broke all business connections in 2011 when he jumped into politics in Austria. Subsequently, Andrew Stronah, the only other child of the couple, subsequently brought a case in support of his parents' situation. None of the allegations was heard in court.

Mr Stronach's lawyers refused to comment but asked questions to a friend of the Dennis Mills family.

"I'm in deep pain for Frank, Belinda and the family because Frank spent his career building wealth and ensuring that wealth is preserved," said Mr Mills, a long-time adviser to Mr Stronah and a former politician and executive director of Magna, who pointed out that many of Mr Stronach's investments are real estate assets that tend to keep their value in time. "I remain optimistic that with love, in the coming days, these problems can be resolved in a way that will benefit both the family and the business."

At the return of the fire, 52-year-old Ms. Stronach wants the court to leave her at the head of the Stranach group, which owns six American horse races, gambling and media companies based on purebred racing and real estate. She said racetracks have doubled her earnings to $ 1.1 billion on her clock, partly through online gambling. Ms. Stronah also pressed her father for $ 32.8 million, claiming that she had to return the money spent on his Austrian political campaign.

"Unfortunately, in Frank's career, business failures and aspirations for idiosyncratic passion projects are as clear as his success in the automotive industry," Ms. Stronah said in a court paper. Mr. Stronach arrived in Canada in 1954 with $ 200 in his pocket and built a $ 21 billion auto parts company. During Stronach's October costume, Mrs Stronach said: "Family relationships in business can be challenging."

Mr Ossip Paul Gogan's spokesman said on Monday: "Alon has worked tirelessly to create value for the Stronach family, and has always been with the utmost honesty. As Chief Executive Officer, he was obliged to confront unsafe costs and unlawful business decisions.

The central legal issue in this dispute is expected to be signed in 2011 when Mr Stronah handed over to his daughter full control over family affairs, say lawyers on both sides. Mr Stronach claims that he has signed documents now allowing him to regain control over family companies whenever he wishes. His daughter says that the agreements were drafted by Mr Osip, as the CEO of the family company, at her request when dealing with cancer, were never dated, and were intended only for emergencies to ensure that the family controls their business if they are incapacitated.

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Stronach's family enmity began after closed doors two years ago when Ms Stronach and Mr Ossip started to reject money demands to support projects like Florida ranch, which is 90,000 acres in Florida. So far, Frank and Belinda Stronah were in close contact with their business and personal interests.

Before her father's initial court trial last October, Ms. Stronah tried to resolve the dispute by dividing family farms: her father would have to deal with livestock breeding operations, would have horse racing and gambling activities, according to councilors. working with both groups. Mr Stronach rejected the idea of ​​separating the empire because the founder of Magna believes he has created the wealth of the family and must have the ultimate authority over where it is spent. Legal documents also show that Mr Stronah wants to use the money generated by horse racing, approximately $ 80 million a year, as well as the ability to borrow money against his racing tracks and other real estate assets to finance his activities on organic farming, which are currently losing money.

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