Czech Republic's Sazka's creditors OK CZK 500 million credit agreement

By Caroline Salls

Pittsburgh, June 7 - Sazka, AS insolvency administrator Josef Cupka received creditors' committee approval of an up to CZK 500 million credit agreement expected to provide funds for ongoing operations, according to a company news release.

Although two financing bids were assessed, the company said only a bid by Moranda was ultimately considered because an offer made by the Gladiolus Co. was not specific enough to be discussed.

Of the total CZK 500 million in financing, CZK 200 million will be used primarily to cover debts to the state and payouts of winnings and jackpots, as well as to pay wages and finance other routine operating activities.

The credit agreement will mature in two years.

The company said it "desperately needs to pay its obligations to the state in the amount of CZK 66 million."

The administrative proceedings for suspension or withdrawal of licenses to operate lottery activities were initiated by the Ministry of Finance of the Czech Republic in connection with those obligations, the release said.

"More money is needed for payouts of winnings, wages and other routine operation activities in accordance with the Lottery Act," Sazka said in the release.

In addition, the company said Cupka's co-workers' group has been operating in Sazka headquarters since the morning of June 6.

According to a separate news release, "the team governs the current management and clearly defines individual steps that should lead to the stabilization of the company."

Sazka is a Czech Republic lottery company.

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