Czech Republic's Sazka says government interference oversteps powers

By Jennifer Lanning Drey

Savannah, Ga., April 6 - Sazka AS is protesting interference by Minister of Education Josef Dobes into the company's affairs, suggesting he is overstepping his powers as a member of the governmental system, the company said in an April 6 news release.

Sazka said Dobes threatened the company's chairman of the board of directors and general director with criminal prosecution on a March 31 Czech television show.

The company said Dobes' behavior is dangerous, containing signs of extortion, coercion and political meddling into business affairs.

Sazka also said that an official offer for funds from the PPF and KKCG Structured Finance Ltd. was never received.

"However, according to a statement in the press, it would constitute an illegal offer because, as was explicitly stated, the funds should be used to pay obligations incurred prior to the bankruptcy order," Sazka said.

The company said it is currently forbidden to pay obligations incurred prior to the bankruptcy order, because that would evolve privileging of creditors.

At the same time, Sazka noted, the same loan was offered to it by Gladiolus AS before the bankruptcy was ordered; accepting the offer was not enabled by the court and the preliminary administrator.

Following the bankruptcy order, the loan was also refused by the preliminary creditors' committee, according to which the loan would be contrary to the insolvency act, Sazka said.

"Now the loan to rescue the company is being offered by the same groups, which directly or indirectly took action leading to the bankruptcy and have their representatives in the preliminary creditors' committee," the company said in the release.

Sazka said it has to wait for a specific offer that would be in compliance with the laws of the Czech Republic.

Sazka's chairman of the board of directors and general manager also said in the release that his prior offer for public debate is still on the table.

In a separate news release, the company said it has the same goals declared by the representatives of some members of its preliminary creditors committee at an April 6 meeting. Those goals include the maintenance of operation and regular services and regaining the trust of the company.

Proposals placed by PPF and KKCG Structured Finance will be discussed at the next regular meeting of the board of directors, the release said.

Sazka is a Czech Republic lottery company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.