The judge ruled that 'both parties have at times acted inappropriately and unfairly'
Norebo billionaire Vitaly Orlov to be bought out
Friday, September 06, 2019, 19:10 (GMT + 9)
A Hong Kong High Court judgment orders Norebo co-founder Magnus Roth to buy Vitaly Orlov out of the fishing and transport holding company Three Towns Capital (TTC), which is based in Hong Kong.
The judge ruled that “both parties have at times acted inappropriately and unfairly”, likened their relationship and dispute to an emotional matrimonial divorce, and said the two men were ‘at war’.
TTC was formed in Hong Kong back in 2006 as a holding company for the two businessmen's operations in the United Kingdom, the United States and Russia. However, the company came to own the Ocean Trawlers Group and all fishing companies in Russia owned by Roth and Orlov.
Roth already owns the other 50% in TTC, which formerly controlled what is now Norebo, Russia’s largest fishing company. In 2008, the Russian assets were transferred from TTC to Norebo, a new holding company.
In 2016, Roth sold his shares in Norebo to Orlov, but retained the 50% in TTC.
This sentence helps to clear the legal situation of Vitaly Orlov not only in Hong Kong but also in the other legal case in London with Alexander Tugushev since they are all "pieces of the same puzzle."
Photo: Norebo new trawler Kapitan Sokolov
Download judgment doc.
Hong Kong judgment
- Paragraph 403-409:
- Hong Kong High Court judge likens Orlov and Roth’s dispute to a matrimonial divorce, noting it was ‘difficult and emotional’ (para 403)
- Judge notes that the two men were ‘soon at war’ (para 406)
- Judge comments that both men have ‘expended such enormous time and emotion and so many dollars and pounds’, and notes that there is a ‘haemorrhage of such enormous financial and non-financial resources’
- Paragraph 366:
- Roth dismissed Three Town Capital’s staff in Hong Kong without Orlov’s consent
- Roth acted unfairly in preventing Orlov from seeing certain documents, including financial information
- Roth appointed himself CEO in order to take over the management of the company from Orlov
- Paragraph 367:
- Orlov committed an ‘orchestrated, unfair and prejudicial disruption’ of one of the fishing companies under Three Towns Capital