The London investment company Blantyre Capital will provide financing to the Arca Capital group. The companies have agreed on business conditions for debt financing, which will help recapitalize the group, Arca said on Thursday in press release. The group got into trouble in connection with the coronavirus crisis, as a result of which its branches in the Czech Republic and Slovakia gained judicial protection from creditors.
“We believe that Blantyre Capital is the right partner. It understands the strengths of the Arca Capital group and has the financial and operational resources to support us in our restart,” said Rastislav Velič, chairman of the board of Arca Investments and its majority shareholder, on Thursday.
“We are excited about the partnership with Arca. It has huge potential and an entrepreneurial team. This is exactly the type of company and management we like to support,” said Blantyre Capital partner Fernando de Santiago.
At the beginning of September, Gomanold and J&T Bank announced the preparation of assistance to the unsecured creditors of the Arca Group. The aim was not to save the group as such, but to help unsecured creditors to recover at least part of the money invested as soon as possible and to maximize the proceeds from the monetization of the group’s assets. Natland also wanted to take part in a process that will lead to maximum creditor satisfaction, including potential debtor financing.
Velič said at the time, according to the Slovak Daily E, that he expects the group’s clients to recover significantly or certainly more than half of their money when they are debt relief. “Before the coronary crisis, our liabilities and assets of Arca were at a balanced value of about one billion euros (about 26.5 billion crowns). The coronary crisis, of course, reduced the value of companies a bit,” said Velic. Arca has hundreds of creditors.
