Subject: [NEXTEL-1] Turkey Seizes Controversial Family Firms

From: [email-masked]
Date: Sun, 15 Feb 2004 03:27:52 -0500

Turkey Seizes Controversial Family Firms
By Gareth Jones, 2/14/2004

ANKARA (Reuters) - Turkish financial authorities jacked up the pressure on the
powerful Uzan family on Saturday by seizing a large number of its companies in
an effort to recover debts totaling nearly $6 billion.
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The state Anatolian news agency put the number of firms, whose interests range
from media to cement, at 219.
Turkey has accused leading members of the family, including patriarch Kemal
Uzan, of involvement in a multi-billion-dollar bank fraud and is seeking their
extradition from the United States, where Turkish media say they have gone into
hiding.

"The operation launched today against the companies owned by the Uzan family,
their relatives and managers is in accordance with Turkish banking law and aims
to recoup public money," the Savings and Deposits Insurance Fund (TMSF) said in
a statement.

It said the family owed 7.500 trillion lira ($5.7 billion).

Anatolian said the move was also aimed at preventing the Uzans from siphoning
off the companies' assets.
CNN Turk television said the TMSF would press on Monday for some of the
companies to be declared bankrupt to help speed up the debt collection.

CNN Turk showed police guarding the entrance to the Istanbul headquarters of the
Uzans' Star media group. Managers of the company were prevented from entering
the building, it said.

TRUSTEES APPOINTED

Anatolian quoted Turkish government spokesman Cemil Cicek as saying that the
companies and factories owned by the Uzans were continuing to operate.

"But they should come and talk to the TMSF and present a plan on how they will
repay their debts," Cicek said.
CNN Turk said the TMSF had divided the Uzan companies seized into four
categories -- media, telecommunications, cement and finance -- and had appointed
trustees to manage each group.
Turkey's banking authorities began moving against the Uzans last summer, seizing
their Imar Bank after declaring it a threat to national financial stability.

The Uzans have accused the government of trying
to destroy them for political reasons. Cem Uzan, unconnected with the Imar Bank
fraud probe, heads the right-wing Youth party.

The party, which has no seats in parliament, issued a statement linking
Saturday's moves to Turkey's local elections set for March.

"The government is frightened about our party's rise and is using the power of
the state to pressure us," it said.
Spokesmen for the Uzans have said any problems at Imar Bank were caused by the
government's seizure of two Uzan-run power companies that had been major clients
of the bank.

Last month, an Istanbul court held its first hearing in the trial of 25
defendants, including Kemal Uzan and his son Hakan, over the bank collapse. The
trial will restart on February 17.
The defendants could face up to 36 years in prison if found guilty.

The Uzans are also locked in a legal battle with U.S. telecommunications
equipment maker Motorola and Finland's Nokia over nearly $3 billion in loans to
Telsim, the family's mobile phone operator.
Cem Uzan and his sister face 15-month jail terms in Britain for contempt of
court for failing to testify on family assets.
($1=1,316,500 lira)

http://www.boston.com/business/articles/2004/02/14/turkey_seizes_controversial_family_firms/

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