Czech Television reports that J&T is taking over the management of companies and assets such as the Mandarin Oriental hotel, the Forentinum building and the former Živnobanka building. They’re all assets owned by the troubled Chinese conglomerate CEFC Europe which pledged them as security for a loan of €450m from J&T. CEFC Europe ran into cash flow problems after Chinese regulators revealed they were investigating the company’s CEO for financial crimes. Starved for funds, CEFC began selling off property assets around Europe, but appeared determined to hold onto its Czech holdings. It’s a remarkable ending to a story in which CEFC originally planned to take over a majority share in J&T Banka. Another Chinese company, the state-owned CITEC, had been expected to pay off CEFC’s €450m loan, but J&T said it needed to be sure other creditors weren’t first in line to be paid off by CEFC. Apropos of this, in a new complication, Reuters is reporting that CEFC Shanghai International defaulted on a $327m bond and has promised to make payments within six months.
