Demac Financial Services

In 2000 Flow East entered into a joint venture with Goldman Sachs, successfully tendering for the first package of non-performing loans to be sold by the Czech State (Konsolidačni Banka) with a nominal value of Euro 450 million. Flow East and Goldman Sachs founded the first specialised non-performing loan management company in the Czech Republic, DEMAC Financial Services, which, in its first few years of business, has proved to be an efficient and effective operation. In 2004, the joint venture partners purchased a second portfolio with a nominal value of Euro 180 million from ČSOB.

DEMAC is located on Wenceslas Square and has its own team of in-house lawyers and negotiators. Since its founding it has been at the forefront of new legislation concerning debt collection and corporate restructuring. Examples of successful company turnarounds include:

• Fosfa a.s. - a phosphorous producing company employing 220 people
• Interier Říčany a.s. - a furniture manufacturer employing 280 people
• Permon a.s. - a pneumatic drill bit manufacturer employing 220 people
• Vinium a.s. - wine producers employing 105 people
• JIP - Papírny Větřní, a.s. – paper producer employing 500 people