PYRR, the owner of five textile factories, was unable to pay back a Kc1bn ($24.9m) loan to Ceskoslovenska obchodni banka (CSOB) because of an attempted fraud, the Hospodarske noviny (HN) wrote today.

The company was due to pay over Kc1bn by the end of this month to CSOB for a loan provided by Investicni a postovni banka. PYRR controls Jitex Pisek, Textilana, Veba textilni zavody, Perla bavlnarske zavody, and Slezan Frydek-Mistek. HN says that PYRR executive Viktor Malat was involved in an attempt to pay the debt to CSOB with a fake bill of exchange. He has since disappeared.

The collateral for the loan was the stock of the textile companies. These however have been forfeited to CSOB on November 9 and the bank has now put them up for sale.

CSOB spokesman Pavel Hejzlar declined to comment, although he conceded that the bank has begun to sell PYRR's collateral and that there have been attempts to submit a fake bill of exchange at the bank. Investigation is under way and CSOB cannot comment, Hejzlar told HN.

Originally, PYRR's loan worth Kc1.33bn ($33m) was to be paid by May 30 of this year, but the deadline was extended to November 30 before Investicni a postovni banka was put under forced administration.