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Arca will write off debts

Arca Capital will file for debt restructuring in Czechia or Slovakia by the end of September and wants to pay its debtors over half of its debts, announced its majority shareholder Rastislav Velič. Since the Slovak legislation requires paying at least 50% of debts, the group is likely to opt for Czechia. Velič says the group had debts as well as assets of €1bn before the pandemic (of which €800m were bills and bonds and the rest bank loans), and the value of assets has fallen since. Velič wants to avoid bankruptcy―while creditors lose out in debt restructuring, shareholders are wiped out in bankruptcy. Peter Brožek and Juraj Dvořák left the group’s management recently.

Pavol Krúpa, the group’s founder who left it in 2019, says the group owes him tens of millions. Velič disputes this. Krúpa disputes his backing of bills issued by Arca last year; he is also on the hook for repayment of Arca’s loans to Privatbanka, PPF banka and J&T banka. Krúpa admits his companies might not be able to pay their dues.

Táto správa je z Ekonomiky DNES, denného prehľadu najdôležitejších ekonomických správ zo Slovenska.

This news is from the Slovak Business News TODAY, one-page summary of all the important Slovak business news.

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