London-based investment firm Riverrock European Capital Partners has been hit with a €3m (£2.6m) lawsuit by three investors over a failed move to take a stake in the company.
The claimants, Jean-Daniel Cohen, Stephane Amine and Henri Chalhoub, all agreed to acquire equity in Riverrock. According to a claim form seen by City A.M., the investment firm was seeking working capital to continue to trade as 2022 results showed a record loss.
The claim form stated that Riverrock accounts for the year ended 31 March 2022 showed a record a loss of €4,293,061.
There was a contract drafted up in May 2022 and the three investors paid an advance payment of €3m to Riverrock on the terms of the memorandum of understanding. Each of the investors would have 22 per cent in the partnership of the firm.
Between April and July of that year, the investors made payments that totalled €3m.
However, Riverrock CEO, Michel Peretie reached a separate agreement with Luxembourg investment firm CFE Finance, which would acquire 60 per cent of Riverrock.
The three investors went on to request for a repayment of their advance payment, which was allegedly refused, according to the claim.
They have now launched legal proceedings in London for the money and interest with a claim for breach of contract. Peretie is also named as a defendant on the lawsuit.
Riverrock was contacted for a comment.