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In December, the YD Capital group was threatened with a forced auction of its house in Na Poříčí Street in Prague 1 at the instigation of one of the creditors. YD Capital turned the auction away at the last minute. However, the holding company, financed largely through bonds, continues to be under pressure and is looking for ways to ensure financial stability. The owner of YD Capital is businessman Pavel Rydzyk.
“YD Capital Group is currently facing an extremely challenging situation, the essence of which is a coordinated external pressure towards a hostile takeover,” the company said in an internal statement available to the editors.
“In recent months, these facts have been followed by intensive raids directed not only against this project (První česká energie, editor’s note), but also against other key assets of the group. The result was, among other things, the calling of an auction for the property at Na Poříčí 17 in Prague. Thanks to our active approach, we have already managed to stop the announced auction,” the YD Capital group further wrote to employees and business partners.
In the mentioned internal communication, the company also states that it is “in an advanced stage of preparing the entry of a strategic partner”, which YD Capital is supposed to ensure, among other things, financial stability. Because of this, according to the document, the group is undergoing an extensive audit. YD Capital also said that in connection with this process, it is necessary to “temporarily suspend selected activities” and “stabilize the state of the company, operating costs and finances.”
It is not clear from the available information what the aforementioned stabilization of the company and finances means, for example, towards bondholders and other investors.
“As a private investment group, we consider it a priority to ensure quality and transparent communication, especially with our employees, business partners and investors. We will not comment publicly on other details regarding internal strategic processes and business negotiations at this time,” said YD Capital media representative Pavla Mudrochová without further comment.
The current events at YD Capital were preceded by the departure of one of the group’s founders. The holding was also struggling with the rotation of top managers or the costs of an energy project in Slovakia that has not yet been implemented.
YD Capital Group does not currently have a valid bond prospectus under which it could issue larger bond issues. The situation is solved by selling bonds in small issues of up to 25 million crowns, for which a prospectus is not required.
