The Czech Export Bank (ČEB) has rejected Arca Capital’s bid to buy a bad loan to Slovakia Steel Mills. The bank guaranteed the CZK 4.6bn loan that facilitated the construction of Slovakia Steel Mills in 2007, but the company’s results were problematic from the beginning. ČEB held a tender for the loan in September which included bids from Arca Capital and J&T. Only Arca and the Ukranian KVV Group were asked to participate in the second round, in which Pavol Krúpa’s Arca Capital offered €52m (CZK 1.44bn). The bank rejected this offer as being too low. Production at the facility halted in August and the company is currently in dire financial straits.
