Nonstandard Investment Practices

 
 

this doesn't look right...

Bakala’s dubious financial operations allowed him to make loans between his various entities, investment funds and corporations at rates favorable to him but bad for taxpayers and investors. Bakala took huge dividends for himself rather than invest in OKD/New World Resources, leading the company to collapse. 

Details

Excessive payment of dividends from OKD towards NWR N.V. company – claim in the total amount of 24,5 billion CZK (over a billion dollars!) during the time period between 2006 and 2012

● OKD, a.s. company in time period between 2006 – 2012 generated net profit in total amount of 34,7 billion CZK  but based on the decision of OKD, a.s. and NWR N.V. regarding the distribution of dividends they distributed excessive amount of dividends - 65,3 billion CZK

● OKD, a.s. has already submitted its claim to the Czech court in particular amount 24,5 billion CZK, defendant party is company NWR N.V. and Zdeněk Bakala together

● This receivable was fully identified by the Czech bankruptcy authority as a part of OKD, a.s. assets and as an independent part of the company’s property

● OKD, a.s. has already filed this claim with Czech court and it is under the Czech police investigation as well 

● An investigation by the Financial Conduct Authority and the Serious Fraud Office is being conducted to investigate the billion-dollar damage caused by OKD

Excessive rate of interest margin in amount of 8,115 % and 4,125 % for intra-group credits provided by NWR N.V. towards OKD, a.s. dated in year 2010 and 2012 which financing the dividends distribution towards NWR N.V. at the same time – claim in total amount 2,786 billion CZK (approx. 0,1 billion EUR)

● Company NWR N.V. provided in 12.7.2010 the intra-group credit in the amount of 11,8 billion CZK with the interest rate 8.115 % and 4.125 % and based on Amendment Nr. 1 dated on the 14.5. 2012 they provided another 120 million EUR with the interest rate was 8 % – purpose of these provided credits: financing of dividend distribution from company OKD, a.s. and optimization of tax payments. The total amount of payed out interests was 2.786 billion CZK in time period 2010 – 2014.

● OKD, a.s company. by the end of the year 2009  before this intra-group credits drawing has fully valid long term syndicated financing with the commercial banks with the interest rate margin between 0.85 % - 1.5%

● OKD, a.s. was able fully repay in the year 2010 the syndicated loans from their own sources, but instead of this they cash out the dividends towards parent company NWR N.V. and subsequently they received the intra-group credits with above mentioned excessive interest rate margin with the story – optimization of tax payment

● OKD, a.s. via Czech bankruptcy authority has already submitted this claim to the statutory body of OKD, a.s. (physical persons)

● This receivable was fully identified by the Czech bankruptcy authority as a part of OKD, a.s. assets as an independent part of the property

● The bankruptcy authority called the statutory body of OKD, a.s. to submit this claim with the Czech court

● The Czech police is already conducting the investigation regarding this issue 

● An investigation by the Financial Conduct Authority and the Serious Fraud Office is being conducted to investigate the billion-dollar damage caused by OKD