De Savary in trouble over sponsorship

Press, 12 April 1989, Page 34

De Savary in trouble over sponsorship

From TONY VERDON, in London Britain’s millionaire yachtsman, Peter de Savary, is on a collision course with his former sponsors, over a controversial $7O million property deal intended to help finance Britain’s challenge for the America’s Cup. The employment agency. Blue Arrow, was sponsoring the challenge until earlier this year when new management took over the company. The loan advanced to one of Mr de Savary’s companies was arranged when Blue Arrow was run by Tony Berry, ousted as chairman last week after the loan was disclosed at Blue Arrow’s annual meeting. It is secured on an unnamed property development being undertaken by one of Mr de Savary’s companies. The American, who is now chairman and chief executive

of Blue Arrow, Mitchell Fromstein. is trying to extricate his company from the arrangements and cut back its funding of the America’s Cup. But Mr de Savary said on Monday that the terms of the loan are still binding on Blue Arrow. He has refused to identify the development on which the loan is secured, from among the 23 he currently has under way in several countries. "As I am solely responsible for this commercial activity and I am satisfied as to the financial soundness of it from Blue Arrow’s point of view, that must suffice." said Mr de Savary. It is understood Blue Arrow lent the money to Mr de Savary’s company with the intention of generating enough income to finance the America’s Cup challenge.