The problems surrounding the struggling Chinese conglomerate CEFC and its debts with J&T Private Investments entered a new phase yesterday following an interview on SeznamTV with Jaroslav Tvrdik, CEFC’s highest placed Czech representative. CEFC had been on course to take a majority position in J&T Bank but the deal broke down as CEFC’s financial situation deteriorated, forcing it to take out a loan of €450m from the bank. It mortgaged several of its Czech properties to make the loan possible, including the Florentinum office building and the old Zivnobank headquarters in Prague 1. The state-owned CITIC then entered the picture, claiming it would take over CEFC, complete its projects and stabilize its financial position.
In the interview, Tvrdik claims that CITIC sent J&T a bank guarantee, offering to pay off the loan within five days. J&T Private Investment confirmed that it had received a letter concerning the loan but said Tvrdik’s description of it was untrue.
