This time it's Robert Tchenguiz who has a bad day?
As with his brother Vincent their financial empire is extremely complex and their true wealth is hard to estimate given the tendency to candy floss accounting.
Everything keeps spinning and as long as it does not stop spinning no true valuation can be arrived at?
So as with Vincent, it's all smoke and mirrors, with investments being in the name of Tchenguiz but in reality a front based on capital raised from City brokers.
The Tchenguiz idea is generally to build up stakes in companies, force them to divest their assets take a profit and run. He then pays back the loan that paid for the stake and keeps the excess for himself.
Now the last few years have not been kind to either of the Tchenguiz brothers, they have even fallen out with eachother.
About Firstport is pleased to report another financial disaster for Robert Tchenguiz.
He borrowed money to take a stake in the First Group who ran South West Trains asmong other services. He invested between £70-£100m when their shares were running at 90-130 pence a share.
The shares are now roughly 28 pence. His lenders called in the loan, but Tchenguiz could not pay so the lenders forced a sale causing Tchenguiz another thumping loss. City rumours suggest that the lenders are going to take further recovery action against him?
