March 29, 2011 / 10:27 AM / 8 years ago

Czech court puts lottery Sazka into insolvency

PRAGUE, March 29 (Reuters) - A district court placed Czech lottery company Sazka into insolvency and called a meeting of its main creditors for May 26, the court said on Tuesday.

The move was expected after the debt-laden company’s chief executive Ales Husak filed for insolvency late on Friday, the latest step in a months-long battle for control of the national lottery operator. [ID:nLDE72P07H]

Sazka, owned by Czech sports unions, had 10.5 billion crowns ($604.1 million) in debt as of September 2010.

Earlier this month, financial group PPF had taken over debt owed by Sazka from its largest creditor and planned to coordinate steps with other creditors, namely Czech investment group KKCG. [ID:nLDE72K20D

Sazka had delayed part of a payment on its 2021 amortising bond CZ025854705= in January and lost its rating from Standard and Poor’s. It made the payment later.

The company got into debt after building a 17,000-seat arena for the 2004 ice hockey World Championship. (Reporting by Robert Mueller; Editing by David Holmes) ($1=17.38 Czech Crown)

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