PRAGUE - The motion to lift the protective moratorium of Arca Capital Bohemia a.s. (ACB) was today dismissed by the Municipal Court in Prague in its entirety. The motion was submitted by Krupa Global Investments a.s. owned by Pavol Krúpa, who previously controlled and effectively ran Arca Capital Bohemia until July 2020. He tried to challenge ACB’s protection against creditors in court, but he himself is the company’s debtor, not its creditor.
ACB provided the court with evidence of major receivables from Pavol Krúpa and his companies. “There are reasonable grounds for suspecting that Mr Krúpa, while working at ACB, caused significant economic damage to the company, as the receivables from him and the group of his companies exceed CZK 250 million,” Rastislav Velič, now the majority shareholder of ACB, said.
“We have provided the court with evidence of financial transactions between Arca Capital Bohemia and Pavol Krúpa, his relatives and companies in his group from the time when Arca Capital Bohemia was controlled and effectively managed by himself,” Velič added.
According to him, ACB thus records receivables from the gradual withdrawal of funds not only through loans, but also through transactions which can be described as unjust enrichment without further proof. It cannot be ruled out that his actions will be dealt with in accordance with the criminal law also in the case of Arca Capital Bohemia.
Amount of receivables with no interest and charges registered against Pavol Krúpa’s group.
a. receivable from Pavol Krúpa in the amount of CZK 50,000,000;
b. receivable from Pavol Krúpa in the amount of CZK 2,641,069;
c. receivable from KGI in the amount of CZK 174,328,903;
d. receivable from KGI in the amount of CZK 2,412,841;
e. receivable from Juraj Krúpa in the amount of CZK 18,000,000;
f. receivable from Andrej Krúpa in the amount of CZK 2,000,000.
Pavol Krúpa is a Slovak businessman and financier currently residing in the Czech Republic. He is the owner of Krupa Global Investments and previously a shareholder of Arca Capital Group. As part of its business, he buys companies in financial difficulties in order to control them.
In February 2018, the Czech National Bank refused Pavol Krúpa’s plan to manage the Arca Capital CEE investment fund; due to previous offences against legal regulations governing the activities of investment companies, it identified Pavol Krúpa as an untrustworthy person and explicitly stated that it would consider rehabilitating his name only in a period of ten years at the earliest.
Pavol Krúpa is best known for his aggressive practices of vexatious insolvency petitions. Krúpa faces an extortion lawsuit in a U.S. court in South Carolina.