25 July 2001
From Alec A. Mizzi , Alf. Mizzi & Sons (Marketing) Ltd, Marsa
We refer to the article that appeared in the 11 July 2001 edition of your paper under the heading "Intense negotiations with foreign investors and Andrews Feeds at Price Club"In your article you stated that "[i]f Price Club sells to Andrew's Feeds their biggest credit problem will be solved as Albert Mizzi, who is the Director of Andrew's Feeds is also a Director of AIf Mizzi & Sons, the biggest creditors of Price Club."
Although it is true that Albert Mizzi is a director of both Andrews Feeds and AIf Mizzi & Sons, the consequential assumptions you have made regarding the possible buy out by Andrews Feeds of the Price Club chain are not.
First of all., although, as stated, Albert Mizzi is a director of Andrews Feeds, he is not the director of that company. In fact, he is one of six directors. Secondly, contrary to the impression given in the above excerpt, especially when read in conjunction with that set out below, Albert Mizzi and AIf Mizzi & Sons have no interest, direct or indirect, in Andrews Feeds, and Mr Mizzi's directorship is in his personal capacity.
Thirdly, we fail to see why the fact that Mr Mizzi is a director of both companies led you to conclude that Andrews' acquisition of Price Club will lead to a solution of the latter's credit problems unless, of course, you were labouring under the misapprehension that we or Mr Mizzi have an interest in Andrews.
This would seem implicit in your guess that "Albert Mizzi might
try to convince other creditors not to take legal action against Price
Club hoping that the new capital and a general restructuring would enable
the chain to get back on its feet." Mr Mizzi has not, at any time,
sought to do any such convincing in order to further his own, AIf Mizzi
& Sons' or Andrews Feeds' Interests. He has, however, participated
actively in the Creditors' Committee's efforts to protect the interests
of all Price Club's creditors by, among other things, seeking to convince
them that it would not be to their advantage to file proceedings against
the Group at this time. Mr Mizzi has not, however, participated in the
Committee's negotiations with Andrews Feeds.