Arca Capital Group has taken control of KGI Global Investments. The reason for this step is the non-payment of the purchase price by the former co-owner of Arca, Pavol Krupa, who bought the company in 2018.
With regard to the involvement of KGI Global Investments in possible criminal activity, including extortion in the USA, a forensic audit was launched in the company in cooperation with partners, with its aim of gather evidence of criminal activity. Arca has already announced that it will cooperate with the US authorities in investigating Krupa’s unfair practices.
“We have already made it clear that similar practices are completely incompatible with the Arca Group’s business. We have been the target of similar attacks for several months. We are ready to cooperate with law enforcement agencies not only in the Czech Republic, Slovakia and the United States,” said the majority. shareholder of the Arca group Rastislav Velič.
Former co-owner Krúp is being sued in a federal court in South Carolina for blackmailing businessman Zdeněk Bakala. He demands more than USD 76 million from Krupa to compensate for the damage caused and legal representation. At the time the acts were committed, Krúpa managed KGI Global Investments and Arca Capital Bohemia, and there is a suspicion that his actions also damaged the entire Arca Capital group, Velič pointed out.
According to him, publicly available sources, as well as the current proceedings before the federal court itself, said that Krúpa had demanded CZK 500 million for ending the aggressive and annoying campaign, which included threats, bullying e-mails, paid demonstrations and thwarting business activities.
The audit also focuses on the overall business activities of KGI Global Investments. Since 2018, when Krúpa took over the company, this company and its subsidiaries have issued bonds in the amount of hundreds of millions of crowns. And these commitments have not been settled. The company is likely to end up in insolvency, says Arca.
Last December, the High Court in Prague stopped the insolvency proceedings against Arca Investments, which began in mid-September 2020. According to the court, the Czech Republic is not Arca’s principal place of business, so the Czech courts are not competent to resolve the case. However, the Czech-Slovak group Arca Capital is now still asking the Prague City Court to initiate a new proceeding to allow the reorganization of its parent company Arca Investments, based on its own motion.
Source: CTK and Arca Capital
