China's CITIC reaches deal with Czech J&T Group on CEFC's debts

PRAGUE - Czech financial group J&T reached an agreement on Friday with China's State-owned investment company CITIC Group on sale of receivables of CEFC Europe, the Czech-based branch of Chinese energy company CEFC.

The information was officially confirmed on Friday afternoon by the representative of the J&T Group.

According to the source, the Czech side has already received 11.5 billion Czech crowns ($547.62 million), which was the debt amount of the CEFC.

CEFC Europe Chairman Jaroslav Tvrdik announced on Friday morning that the crisis management is over as within Friday all loans of CEFC Europe is to be paid off to J&T and the assets to be returned.

The deal will also let CITIC to acquire 9.9-percent share in the J&T Finance Group.

Vratislav Mynar, chancellor of the Czech President Milos Zeman, said he was glad that the story had finally come to an end. "This means that CITIC Group has taken over all of CEFC Europe assets."

Last week, the J&T Group took over the assets of the CEFC Europe branch in the Czech Republic after the CEFC Group failed to pay its debts on time. Later, the parties agreed that CITIC Group, who has a 49-percent stake in CEFC Europe, would pay off the debts.