Vista Global Founder Thomas Flohr Embroiled In UK Lawsuit
From LinkedIn:
The attached article adds to an expanding narrative concerning Vista Global and their founder, Thomas Flohr.
Yesterday’s article, published by WirtschaftsWoche (a German publication) considers a lawsuit that has been filed by Frontier Capital, who are alleging that Vista Global’s founder, Thomas Flohr, is guilty of breach of contract. The complaint demands payment of €58 million (approximately $63.5 million at today’s exchange rate).
The article (English translation attached) suggests that some of the income enjoyed by Mr. Flohr is owed to the plaintiff, Frontiers Capital, under the terms of a contract that was agreed between Frontier Capital’s then Managing Director, Timothy Horlick, and Thomas Flohr. More disturbingly, the complaint alleges that Mr. Flohr went to considerable lengths to divert proceeds from business dealings into entities that were created using similar names to companies that were legitimately involved with business dealings involving the plaintiff and the defendant.
If these accusations are proven to be correct, they point to a seemingly sophisticated plan to deceive business partners. Of course, there is always a presumption of innocence, in London’s High Court. Further, Mr. Flohr, through his lawyers, has insisted that the claims are “inaccurate and the claims made are obviously unfounded”.
Taking a step back, we are seeing a steady accretion of published articles, in the Financial Times and two articles in WirtschaftsWoche, concerning Vista Global and Thomas Flohr. Indeed, several of my own LinkedIn posts have highlighted longstanding concerns about the viability of VistaJet’s business model. It’s difficult not to surmise that smoke frequently foreshadows fire!
We could be witnessing the beginnings of a media feeding frenzy, involving Vista Global and their founder. Journalists appear to be focusing on two subjects, for now. Firstly, Thomas Flohr and his involvement with past and current businesses (Comdisco, Comprendium, Vista Global). Secondly, the financial fortunes of Vista Global, a company that appears to be weighed-down by high levels of debt, rising interest expenses, mounting liabilities associated with unsecured service pre-payments and a charter market in which flight hours and hourly revenues are facing downward pressure.
In addition to monitoring the progress of this lawsuit, I will continue to monitor the media for additional stories concerning Vista Global, their founder and the subsidiaries they own.