Czech Republic

A lack of tourists in the Czech capital forced City Sightseeing Prague to file for insolvency, Prague Morning reported. City Sightseeing is one of the world’s leading open-top bus, boat, and guided walking tour company. Established in 1999, the global brand provides hop-on hop-off services. City Sightseeing operates in over 100 locations across 5 continents which includes cities such as London, Rome, New York, Edinburgh, Seville, Moscow, Cape Town, and Prague.

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Blažek, famous Czech brand for menswear, has filed for insolvency, PragueMorning.cz reported. The company registers more than 150 creditors for a total debt of almost 87 million CZK. As iHNED.cz reports, the company’s founder is considering the entry of a new investor. The company became insolvent from the forced closure of stores during the first and second waves of the epidemic. Like many retailers, Blažek was already struggling with the shift to online shopping even before the pandemic struck this spring.

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Insolvency and restructuring activity remained low across Central and Eastern Europe (CEE), since the beginning of the pandemic, except Romania, which has recorded an increase in the number of insolvencies, and Czech Republic, which saw an increasing trend in restructuring, according to PwC ”Global Restructuring Trends” report, Business Review reported…According to the report, insolvencies are expected to increase in Q4 2020 and into 2021 globally, especially for those companies that operate in heavily COVID-19-affected industries that may take much longer to recover, such as leisure, trave

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Czech lender Komercni Banka reported a larger-than-expected 57% drop in third-quarter net profit on Thursday as bad loan provisions grew amid the coronavirus pandemic, Reuters reported. The Czech Republic, like other European nations, is facing a strong second wave of coronavirus infections, forcing the government to shut many retail shops, services and public venues. Banks face the prospect of rising loan defaults as repayment moratoriums expire and the economy struggles to recover.

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Komercni Banka on Wednesday posted an 8.5% drop in third-quarter net profit, in line with estimates as financial operations income fell and the Czech lender did not see a net release of bad loan provisions as in previous quarters, Reuters reported. Attributable net profit came in at 3.85 billion crowns ($167.25 million), versus the average estimate of 3.88 billion in a Reuters poll. The bank, 60% owned by France’s Societe Generale, boosted net interest income and net fees by 2.1% and 1.2% year-on-year respectively.

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A Czech court ruled that Citibank’s claim to debt worth over 10 billion crowns ($434.10 million) owed by Czech miner OKD was eligible, CTK news agency reported on Wednesday, Reuters reported. CTK reported OKD’s former insolvency administrator and representative of the state, which now owns OKD’s mining operations, both said they would appeal the ruling. OKD filed for insolvency in 2016 while a unit of miner New World Resources, which went into liquidation that year. OKD’s insolvency administrator rejected Citibank’s claim, leaving it out of proceedings.

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Czech financial firm J&T said on Friday it had struck a deal with Chinese state conglomerate CITIC Group to settle debts owed by troubled Chinese company CEFC, ending a dispute, Reuters reported. Privately-held CEFC has spearheaded a Chinese acquisition drive in the Czech Republic, championed by Czech President Milos Zeman, which includes a range of assets including engineering, brewing and real estate as well as a soccer club and an airline.
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CEFC Europe, a Czech-based division of troubled conglomerate CEFC China Energy, said it would contest a takeover of shareholder rights by creditor J&T Private Investments (JTPI), arguing it had funds to pay a debt at the centre of the dispute, Reuters reported. Czech-based JTPI said on Thursday it had taken over the rights and installed crisis management because CEFC Europe had not covered its debt, totalling 450 million euros according to CEFC, in time.
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Creditor J&T Private Investments (JTPI) said on Thursday it had taken over shareholder rights and installed crisis management at CEFC Europe, the Czech-based part of troubled Chinese conglomerate CEFC China Energy, Reuters reported. The move is a sign of fresh woes for CEFC Europe which bought Czech assets from real estate to breweries, an engineering firm, an airline and a football club, under an investment drive promoted by Czech President Milos Zeman. CEFC Europe protested against the move, saying it had the money ready to cover the debt.
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Policy makers in Prague may introduce negative interest rates to discourage inflows into the koruna around the time they are ending their three-year-old limit on the exchange rate, a policy maker said, Bloomberg News reported. As the Czech National Bank prepares to scrap its Swiss-style cap on the koruna next year, its main challenge is to avoid excessive currency gains that could choke nascent price growth and make the export-led economy less competitive.
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