One of the largest current bond cases is the EMTC group of Tomáš Bárta. In 2018 and 2019, it issued 900 million bonds for software development. In 2019, it went into insolvency and owes about 1.8 billion, most of it on bonds.
The C2H group with the Kara or Pietro Filipi brands, which is controlled by businessman Michal Mička, has the same debt problems. The company owes 800 million, of which bondholders account for about half. The Arca Group has left behind debts of 19 billion, over 8.5 billion in bills of exchange.
All in all. The eight-year bond eldorado, which began with the easing of conditions on the CNB and the Ministry of Finance led by Miroslav Kalousek, resulted in the issuance of dusty bonds worth 4.35 billion. In the most critical years, 2016 to 2019, up to a tenth of issues ended up in insolvency. The data come from a study by the forensic company Surveilligence.
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At the same time, the report shows a certain naivety of investors. As many as two-thirds of companies did not publish financial statements before the bonds were issued. Almost half of the companies went into insolvency within two years of the last issue. Analysts then found in their practices suspicions of perhaps all possible unfair acts, such as the Ponzi scheme or plane, misrepresentation or classical tunneling.
“Our research has shown that among the companies that attempted a moratorium in bankruptcy or sought to resolve the bankruptcy by reorganization, most of those that had been in bankruptcy for three years prior to its formal disclosure and filing for insolvency,” says the director of the Restructuring Center. and the insolvency of Harry Pollak Jaroslav Schönfeld.
Inflation: It has risen the most in the last thirteen years
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But it is also important to look at why the bond boom in the Czech Republic occurred. In 2012, the Czech National Bank, together with the Ministry of Finance, relaxed the conditions. The obligation to have the CNB approve the issuance conditions for bonds up to one million euros has lapsed.
“The issuance of small sub-threshold corporate bond issues up to this amount has thus become an absolutely unregulated, virtually unguarded and very risky part of the investment market, and the market for these sub-limit, high-risk corporate bonds has grown uncontrollably in recent years,” commented the study authors.
Web platforms and sales networks with intermediaries and consultants spread immediately. They then cursed the investments by sanctifying the CNB, even though the National Bank was only checking the formal correctness of the prospectuses, ie some information for investors that the bond issuer had provided.
The period framework is also important. Rates were very low, inflation very low and investors rich. They were desperately looking for a place to save money, and corporate bonds proved to be a great opportunity.
Laws on emissions were tightened only last year. Nevertheless, they do not guarantee that the scenarios of recent years will not be repeated, and in general, especially below-limit bonds, they have not switched to a safe category.
Overview of bond companies with initiated insolvency proceedings, broken down above-limit and below-limit issues in millions of crowns
Above-limit emissions
- ZOOT, 230 million crowns
- Tabuc – Pack, 35 million crowns
- Nautic Solutions, 229.7 million crowns
- Lipa Learning, 111.8 million crowns
- LentiKats, 37 million crowns
- iConsulting 4 Companies, 100 million crowns
- Help Financial, 150 million crowns
- Finapra, 100 million crowns
- Euro Development, 80 million crowns
- Euro Development Project 1, 95 million crowns
- EMTC – Czech, 920 million crowns
- DC Energy, 138 million crowns
- Clever Monitor Financials, 100 million crowns
- C2H Retail Holding, CZK 700 million
- C2H Financial, 400 million crowns
- Brooc Global Investments, 300 million crowns
- Arca Acquisition Capital, 200 million crowns
- TOTAL: 3 926 500 000
Sublimit emissions
- ZOOT, 21.85 million crowns
- Xenylla, 5 million crowns
- Wood Union, 41.6 million crowns
- Weber EU, 16 million crowns
- Triload Invest, 24 million crowns
- Seven Prague, 22 million crowns
- Remaind, 25 million crowns
- Regional Express, 6 million crowns
- Regal Group, 6.5 million crowns
- PM Brewery, 0.7 million crowns
- Nautic Solutions, 24.26 million crowns
- Miia SE, 10 million crowns
- Midea, 25 million crowns
- Maxi – Tip, 24 million crowns
- Lipa Learning, 28.4 million crowns
- Euro Development, 25 million crowns
- ENTEF Group, 25 million crowns
- EMTC – Czech, 20 million crowns
- Data Safe Center, 25 million crowns
- BGC Travel, 24 million crowns
- BE 2025, 3 million million
- Anilo Drinks, 25 million crowns
- Total: 427 310 000
Source of Surveillance
Development of the total amount of issued corporate above-limit and below-limit bond issues from 1 January 2013 to 31 August 2021 in millions of crowns
| Year | Above-limit | Sublimit |
| 2013 | 15 134 | 10 |
| 2014 | 25 580 | 89 |
| 2015 | 35 052 | 20 |
| 2016 | 38 242 | 439 |
| 2017 | 35 955 | 923 |
| 2018 | 56 513 | 1 102 |
| 2019 | 45 120 | 844 |
| 2020 | 40 275 | 1 011 |
| 2021 | 42 212 | 795 |
| Total | 334 083 | 5 233 |
Source of Surveillance
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