Press Releases

15. 11. 2006 16:00

Government adopted proposal to commence

Press release- government adopted proposal to commence execution against SETUZA

By its resolution of 15 November 2006, the Government of the Czech Republic has resolved that the Support and Guarantee Agricultural and Forestry Fund, a.s. (“SGAFF”), with the Czech republic being its sole shareholder, having receivables due from SETUZA a.s. in the aggregate amount in excess of four billion Czech crowns, which the debtor acknowledged in writing on 23 April 2004, will file a petition for the commencement of execution to enforce said receivables due from SETUZA a.s.
Individual state agencies and legal entities controlled by the state had repeatedly sought to handle the issue of receivables due from SETUZA a.s. in various manners, including amicable settlement or sale of the receivables through a transparent public tender.
Besides, the European Commission began asking questions about the manner of resolving the situation involving SGAFF receivables due from SETUZA a.s. with a view to ensuring that, in this context, the settlement of receivables due from SETUZA a.s. does not involve any unauthorised state aid provided to this debtor. State aid may occur not only as a result of inappropriately chosen method of settlement of receivables, but also by unreasonable delays in the enforcement or settlement of the receivables.
With a view to eliminating the risk of unauthorised state aid being provided to SETUZA a.s. in connection with the management of the receivables, and also in order to maintain absolute transparency of the process, the SGAFF filed on 15 November 2006 a petition for execution to secure enforcement of the aforesaid receivables.
Execution by way of sale of the enterprise will provide the highest revenue possible and will allow preservation of operations of the enterprise without posing any threat to production or employment.

Press Department of the Office of the Czech Republic Government

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