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³This project is dedicated to our respected teacher who encouraged us to do such a thought provoking and
meaning full project´

 

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„irst of all we want to pay our gratitude to Almighty  ¯ who has enabled us to
successfully accomplish this task.

Then we would like to thank our teacher    

 who has enabled us to
enhance our skills and have given us a chance to take part in such kind of practical activities that
will help us to achieve future goals and made us professional in our specific field. The matter is
not that what we are doing but the matter is that how we are doing these things. Our behavior and
our conduct shows to the people that how we achieve this goal.

 

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cc 


  ! 
Public

   Bankrupt & broken up


" 1940


à"  Bankrupt 1990

¯ #"  
 London, UK


!! Asil Nadir, (CEO)



 "
  Electronics

 !

17,220

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cc 

c c      $cc  was a small and barely profitable à  
 
     which expanded rapidly in the %&'(
and became a constituent of the „ 

  before it collapsed in 1991.

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The Company was founded by Raymond Zelker and his wife Sybil  %)' as a small
fashion house operating in  

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The tale of Asil Nadir and Polly Peck was literally one of rag trade to riches. In the
%&'
+  seemed to have the * ", with
*
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wherever he turned his

hand, making some pretty pennies for many of his early investors.

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%%, Nadir ended up on the run from the
„raud Office. In 1993 he fled to Turkish Northern Cyprus, which has no extradition treaty with
the UK, to escape trial on charges of systematic fraud. He is still there to this day.

¯"

**

 
 
 %)  + Cyprus, with the birth of the boy who was to soon
acquire an entrepreneurial bent through his first job, at the age of six, selling newspapers. Later,

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after failing to complete a university degree, he joined his father in the UK, where he got his first
taste of the rag trade.

After the Turkish invasion of Northern Cyprus, Nadir returned to his homeland and took
control of a clothing company whose previous Greek owners had been forced out. „rom this
beginning the Polly Peck story took off after Nadir bought into the company.

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launched a rights issue to  
1/, !  for investments abroad.

 %&2   began the early ventures. These included Uni-Pac Packaging Industries
Ltd, Voyager Kibris Ltd, and Sunzest Trading Ltd, three companies incorporated in the Turkish
Republic of Northern Cyprus.

Uni-Pac was a corrugated box manufacturer and packaging company formed to take
advantage of surplus citrus fruit being grown in Cyprus, which was forecast to produce a
minimum of £2.1 million profit. Voyager Kibris Ltd was used to purchase the Sheraton Voyager
Hotel in Turkey and to build resort hotels in Northern Cyprus.

! 
%&2  #"  5

/30  -   , Cornell,
whose shares were considered penny shares.[2] 
26! .''!



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 . Nadir had Cornell sell a rights issue, raising 1236 .
This capital, plus a further £6 million from Polly Peck, was used to set up the 'Niksar' mineral
water bottling plant in Turkey. Niksar subsequently sold an estimated 100 million bottles of
water to the Middle East.

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 %&7+   

*  -! * cc (
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*  36
! stake in Santana Inc. in the United States, and a majority stake in InterCity PLC in the
UK. Nadir then extended PPI's textile operations into the „ar East, acquiring a majority stake in
Impact Textile Group in 1986, and by increasing PPI's existing stake in Shuihing Ltd. to 90
percent. %&3cc  #"  5  
c $
 Ltd., a manufacturer of
casual shirts.

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! ,
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, one of the largest publicly traded companies in
Turkey.Vestel manufactured color televisions, Betamax video recorders, air conditioning units,
audio equipment, microwave ovens, and washing machines. PPI's success in the electronics
business was substantially enhanced in early 1986 when Akai of Japan decided to join „erguson,
Salora, and GoldStar as licensors to Vestel. Subsequently, PPI also acquired house wares
manufacturer Russell Hobbs.

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" (a Japanese electronics company on hard times). This was one of the
first foreign acquisitions of a major Japanese company listed on the Tokyo Stock Exchange. 

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8&3/ from
RJR Nabisco, which had previously acquired it. Polly Peck then gained the ultimate accolade of
being admitted to the   µ
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By 1990 five firms had emerged as the dominant actors in fresh fruits and vegetables in
Western Europe and North America. These were the ex-banana giants: Chiquita, Dole, and Del
Monte Tropical; and the two new upstarts: Polly Peck International and Albert „isher. The move
was part of a larger planned restructuring under which Polly Peck developed its electronics,
foods and leisure businesses into three largely independent companies.

In less than ten years, under this growth-by-acquisition strategy, cc (

   
 ! 9  ,    17''+'''  13
  
 ! . It became a holding
company for a worldwide group of over 200 direct and indirect subsidiary companies.

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With pre-tax !

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!
, the Polly Peck group was one of Britain's top one hundred quoted companies. c
c  

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was the  *
!  Cyprus (after the state) with
3+/''!
there.

 !    ! !. 

 "*"
 %%'   came to the view that the Company was undervalued and then
announced that he was taking it private. Almost as suddenly later that month he announced that
he had changed his mind.

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Apparently not too keen on public scrutiny, and stung by criticism of lack of transparency
concerning the group's earnings. News of the planned buyout sent the highly priced shares even
higher.
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! . !-

" ". Attempts to restructure this debt
failed, and the banking support needed for the takeover did not materialise.The share price began
to fall again.

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During this time, control of Polly Peck's cash appears to have been virtually non-existent,
and Nadir had been transferring vast sums into secret private accounts in Northern Cyprus and
Turkey. Investigations subsequently discovered that, in the two years leading up to Polly Peck's
collapse, Nadir had been bleeding the company dry. In %&& c c   
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µ" 
  ! subsidiaries, and in 1989 a sum of £141m was paid out in 60 separate
transactions. Many of the company's assets, again in   !"
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had also been secretly registered in Nadir's name.

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Administrators failed to save the company, and Polly Peck was no more.   ,

 * ,  3' "

   
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  17/
 He
skipped the UK (as the story has it, when detectives watching him were off duty on a bank
holiday to save overtime pay), and to date has not returned.

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 %%'+  "

  "  $ raided South Audley
Management, the company that controlled the Nadir family interests. The raid triggered a run on
Polly Peck shares with the price practically in free fall.

Trading in the company¶s shares was suspended on 20 September 1990. PPI¶s problems
became apparent from the structure of the group¶s debts. The company had over £100 million in
short-term revolving lines of credit. Even more debt consisted of long term loans for which Nadir
had offered Polly Peck¶s shares as collateral.

2/! 
%%' ! ,

!  
 

Ultimately the company collapsed, and charges were brought against Asil Nadir for 70
charges of false accounting and the theft, which he denied.

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+   ¯* + which was based in the Netherlands. In the same year,
following the collapse of the Polly Peck Group, PPI was placed in administration. In November
1994,    9 :" #" cc from the administrator by buying the entire share
capital of Collar Holding BV, which at the time held &20   c c (
 

"
 
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 .* 


   
5"
  
17/ bail had lapsed, while the detectives who
were watching him were off duty to save overtime pay on a holiday. He remains a fugitive in
Northern Cyprus, which has no diplomatic relations. Peter Dimond, the pilot who flew him out
of Britain, was convicted of aiding a fugitive, but the conviction was quashed once it was
determined that the bail had lapsed.

At the end of the controversy, the Serious „raud Office and the British political
establishment were both discredited. A government minister resigned, denouncing prosecuting
authorities. A high court judge and a QC were accused of a 'plot' to pervert the course of justice.
The Attorney General had to apologies for misleading Parliament.

  

Unlike most of the other fraudsters we've looked at in this series, Nadir has so far not had
his comeuppance. Today he runs 

   "!    !"
, which publishes a
couple of newspapers and operates TV and radio stations. He is, apparently, accompanied by a
retinue of bodyguards wherever he goes, which is probably a wise move.

 

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http://www.fool.co.uk/news/investing/2009/06/22/famous-scams-polly-peck.aspx

http://en.wikipedia.org/wiki/Polly_Peck

1. G Increased stake in Sansui Electric

2. G Stoys faces fine and lessons over Polly Peck
3. G Asil Nadir hires top criminal barrister for defense
4. G Zorlu Holding acquires Collar Holding
5. G 'Angry' Asil Nadir pilot freed
6. G How Asil reached his Nadir

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