But this is far from covering the total loss of over 500 million crowns, he pointed out server E15. A number of small Czech investors who were inspired by the purchase of shares also lost on the investment.
Venator Materials filed for bankruptcy in the United States this May. Two months later, a Texas court approved a plan to restructure the company, which included making the bankrupt company’s creditors its new owners, while existing shareholders’ shares would be canceled without compensation.
Naturally, however, the Czech fund, as the company’s second largest shareholder, opposed this and sent the matter to court. In the end, however, he capitulated and at least agreed to a settlement with the company. J&T Arch Investments informed about it in press release.
British chemist Venator, in which the Czechs also invested, declared bankruptcy in the USA
“At the general meetings in July and subsequently in August, the fund voted against the presented points in an attempt to protect its investment,” the fund explained its decision.
“However, after discussion with American and British lawyers, the fund came to the opinion that the implementation of the plan would still happen in the foreseeable future (note the possibility of having the plan approved by the insolvency court in Great Britain) and the continuation of the dispute would only lead to additional material expenses associated with legal advisors, and above all in the potential sanctions from the US court for not respecting its decision,” the fund further explains.
The financial settlement amounts to 2.5 million dollars (almost 57 million crowns), which is compensation for court costs.
In return, J&T will provide the fund’s cooperation “in the next vote at the general meeting that will allow the implementation of the plan. However, the loss of 100% of the fund’s investment unfortunately remains,” added J&T Arch Investments.
The one hundred percent loss exceeds half a billion crowns in nominal value, the server reported E15. He specifically stated that at an average purchase price of $1.55 per share, the fund paid a total of $23.87 million for the share, which translates to more than 544 million crowns.
At the same time, the fund bought shares of Venator Materials together with Šnobr only last May. They entered the company, which focuses on the production of titanium white and functional additives, by purchasing 9.42 percent of the shares, thanks to which they acquired the second largest stake in the company.
Loss for all shareholders
“Before conclusions are drawn here, I would just like to remind you that someone had to pay for the costs of lawyers in Britain, the USA, experts, etc.,” X Šnobr commented on the matter somewhat vaguely on the social network.
“Venator ends up being a loss for all shareholders. One day, and after a long time, the time will come to share hard-earned experience about the reality of capital markets in the USA,” added Šnobr.
Before jumping to conclusions, I would just like to remind you that someone had to pay the costs of lawyers in Britain, the USA, experts, etc. #VNTR ends in a loss for all shareholders. One day, and after a long time, the time will come to share the hard-earned experience about the reality of chap. US markets… https://t.co/drfPBHve1z
— Michal Šnobr (@michalsnobr) September 20, 2023
His investment together with J&T in this company received a lot of attention, especially on X.
Even though it was a risky investment from the beginning, a number of small Czech investors were inspired and also bought shares in Venator Materials. Now, however, they have lost all the invested money, because the settlement agreement only concerns the fund and Snobr.
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2023-09-20 13:40:08
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