Czech financial group JTPI takes over CEFC Europe

Source: Xinhua    2018-05-19 05:22:05

PRAGUE, May 18 (Xinhua) -- Czech financial group J&T Private Investments (JTPI) has decided to take control of the management of the CEFC Europe, a Czech-based European branch of the Chinese conglomerate CEFC China Energy.

The reason for this step, according to the JTPI statement on Thursday, was the unpaid debts that CEFC Group didn't pay on time.

Since 2015 the CEFC has a 9.9-percent stake in the JTPI. As known from the companies, CEFC took loans from the JTPI in the period from January to March 2018 for a total of about 450 million euros (about 530 million U.S. dollars).

The JTPI representatives claimed that the CEFC had not paid back the loan towards JTPI. In this regard, the JTPI made a decision on Thursday to take over the management of the CEFC's European branch, which meant dismissing the board of directors, represented by the Czech chairman Jaroslav Tvrdik, and launching the anti-crisis process. A financial and legal audit is being prepared.

The dismissed chairman of the CEFC Europe Jaroslav Tvrdik said on his Twitter that 475 million euros were already stored on a special account at the Ceskoslovenska obchodni banka (CSOB), and CEFC intended to make a transfer to the JTPI. Tvrdik added that JTPI was aware of that plan and unjustifiably refused to accept the money.

The JTPI, however, claimed the opposite -- the payment deadline expired on May 15. The JTPI shortened the pay-off deadline plan as they had been receiving the information about the financial problems of the Chinese group.

Jiri Ovcacek, Czech president's spokesman, said on Friday that the Castle would not comment on the current issue. According to the Prime Minister Andrey Babis, this is a matter of private companies. "It is in the interests of the companies to make clear who the owner is, let's hope it will clear up as soon as possible," he was quoted as saying.

At the moment, the JTPI entered into negotiations with the Chinese state-owned conglomerate CITIC, which recently became a co-owner of the CEFC Europe with a 49-percent stake.

CITIC, in a letter dated May 8, undertook a right to repay the debt of the CEFC within the next five working days, which was until May 15. The payment, however, did not happen. This allowed the JTPI used the situation in their favor and took over the Czech branch, establishing the anti-crisis management.

JTPI co-owner Patrik Tkac said on Friday that he considers CITIC to be a trustworthy and transparent partner. The Czech side is ready to immediately receive the money and transfer the control back to the CEFC.

CEFC China previously selected the Czech Republic as the seat of its European activities. It had bought shares in several companies. In the Czech Republic, CEFC Europe manages assets over 1.5 billion euros.

Editor: Mu Xuequan
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Czech financial group JTPI takes over CEFC Europe

Source: Xinhua 2018-05-19 05:22:05

PRAGUE, May 18 (Xinhua) -- Czech financial group J&T Private Investments (JTPI) has decided to take control of the management of the CEFC Europe, a Czech-based European branch of the Chinese conglomerate CEFC China Energy.

The reason for this step, according to the JTPI statement on Thursday, was the unpaid debts that CEFC Group didn't pay on time.

Since 2015 the CEFC has a 9.9-percent stake in the JTPI. As known from the companies, CEFC took loans from the JTPI in the period from January to March 2018 for a total of about 450 million euros (about 530 million U.S. dollars).

The JTPI representatives claimed that the CEFC had not paid back the loan towards JTPI. In this regard, the JTPI made a decision on Thursday to take over the management of the CEFC's European branch, which meant dismissing the board of directors, represented by the Czech chairman Jaroslav Tvrdik, and launching the anti-crisis process. A financial and legal audit is being prepared.

The dismissed chairman of the CEFC Europe Jaroslav Tvrdik said on his Twitter that 475 million euros were already stored on a special account at the Ceskoslovenska obchodni banka (CSOB), and CEFC intended to make a transfer to the JTPI. Tvrdik added that JTPI was aware of that plan and unjustifiably refused to accept the money.

The JTPI, however, claimed the opposite -- the payment deadline expired on May 15. The JTPI shortened the pay-off deadline plan as they had been receiving the information about the financial problems of the Chinese group.

Jiri Ovcacek, Czech president's spokesman, said on Friday that the Castle would not comment on the current issue. According to the Prime Minister Andrey Babis, this is a matter of private companies. "It is in the interests of the companies to make clear who the owner is, let's hope it will clear up as soon as possible," he was quoted as saying.

At the moment, the JTPI entered into negotiations with the Chinese state-owned conglomerate CITIC, which recently became a co-owner of the CEFC Europe with a 49-percent stake.

CITIC, in a letter dated May 8, undertook a right to repay the debt of the CEFC within the next five working days, which was until May 15. The payment, however, did not happen. This allowed the JTPI used the situation in their favor and took over the Czech branch, establishing the anti-crisis management.

JTPI co-owner Patrik Tkac said on Friday that he considers CITIC to be a trustworthy and transparent partner. The Czech side is ready to immediately receive the money and transfer the control back to the CEFC.

CEFC China previously selected the Czech Republic as the seat of its European activities. It had bought shares in several companies. In the Czech Republic, CEFC Europe manages assets over 1.5 billion euros.

[Editor: huaxia]
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