Lottery giant Sazka fighting to survive

28-01-2011

Managers of debt-ridden lottery giant Sazka have started talks with creditors about the possibility of asking the court for a moratorium which would avert the threat of insolvency for three months, daily Hospodarske noviny said Friday. People on the management of the Czech Sports Association, which is Sazka's biggest shareholder, are allegedly beginning to accept the fact that an investor who would be willing to pour 2 to 3 billion crowns into the ailing company would become a shareholder. The sports association had thus far rejected such a possibility, wanting to keep an absolute majority in the company. In recent years the company generated a debt of around 10 billion crowns, mainly related to the 2004 construction of Prague’s O2 Arena.