ENIC director Matthew Collecott says the football club investor will take all possible steps to get a Kč 110 million debt for Slavia repaid, even if it results in the club being relegated from the top flight of Czech football. It is also prepared to launch international arbitration proceedings agianst the Czech state after being stripped of ownership.
Prague 13 Mayor, David Vodrážka, has announced that Key Investments, has returned Kč 49,937,317 of over Kč 200 million that the Prague 13 administration entrusted to the investment firm. Vodrážka told an extraordinary meeting of the Prague 13 assembly that the purchase of debt bonds issued by the companies Via Chem Group and E Side Property was a normal and legitimate investment and that it’s just a question of time before the administration gets the rest of its money back.
Following similar steps by Prague 6 and Prague 13, Prague 10 has demanded the brokerage Key Investments to return money it invested. Together these administrations have entrusted more than Kč 650 million to Key Investments. Prague 10, however, has asked only for its bonds from the Via Chem Group to be sold, choosing to keep its shares in E Side Property.
The district administration of Prague 10, which invested public funds with the Key Investments, has not managed to find a way of getting the money back. The tactic chosen by the district’s mayor Milan Richter (Civic Democrats, ODS) is to buy time, but he has yet to find a bona fide expert willing to make a favorable evaluation of the portfolio.
The district administrations of Prague 6, 10 and 13 still have a total of more than Kč 650 million tied up in the investment firm Key Investments which they are attempting to get back. However, instead of coordinating their efforts to redeem their money, the leadership of each administration has chosen a different tactic. It remains to be seen which, if any, will be more successful.
Via Key Investments, several Prague districts are financing activities of E Side Property, which owns the stadium where Slavia play. Czech Position has learned that the football club is also connected to the dodgy brokerage — which is behind a contested share capital increase in the club’s operator — and now ENIC Football Management, Slavia’s “true owner,” is fighting to get the club to pay back loans.
Libor Jirků (TOP 09), a representative in the assembly of Prague 13, has lodged a criminal complaint relating to the Key Investments case. Prague 13 has more than Kč 200 million tied up in an investment portfolio managed by the brokerage and Jirků says there is a danger the city district will lose the money. As previously reported by Czech Position, David Vodrážka (Civic Democrats, ODS) has already requested Key Investments to return all the of the administration’s funds tied-up in portfolios managed by the brokerage.
Czech Position has been closely following the case of the non-transparent brokerage Key Investments to which three Prague district administrations entrusted hundreds of millions of crowns of public funds. As we reported last week, a distrainment order has been placed on part of the Key Investment’s property. Several of the brokerage’s clients have consequently taken legal steps in an attempt to retrieve their money being managed by the troubled firm.
A court distrainment order was served to the brokerage Key Investments on Feb. 24, 2011 (distrainment order no. 086 ExS 34/11-11), which affects the company’s 100-percent stake in its subsidiary Depozitní centrum, the operator of a safe deposit box service in central Prague.
Representatives of the Prague 6 administration gave positive references about the Key Investments brokerage in which the administrations of Prague 6, 10 and 13 have around Kč 650 million of public funds tied up in portfolios with largely non-liquid assets. Now they deny anything of the sort happened.