The events surrounding the indebted developer ECM will be addressed by the Constitutional Court

CITY project at Pankrác Plain

Prague - Astin Capital Management has filed a complaint with the Constitutional Court against the decision of the Municipal Court in Prague, which denied the company voting rights in the insolvency proceedings with the development company ECM Real Estate Investments (ECM). This was reported today by ČTK based on the insolvency register.
    ECM has been in bankruptcy since July. Astin Capital proposed a reorganization for the indebted developer. Astin Capital represents a portion of the holders of bonds issued in euros. Its registered claim of around 3.1 billion Czech crowns is the largest in the insolvency proceedings with ECM, but the insolvency administrator Ivo Hala did not recognize it. The court subsequently ruled the same way.
    The general director and founder of ECM, Milan Janků, initiated another court case. He suggested to the High Court in Prague in an appeal that it overturn the bankruptcy decision. Among other reasons, he cited alleged errors during the court proceedings of the bankruptcy case. Astin Capital has also appealed against the bankruptcy decision, similarly to Janků, wanting to resolve ECM's debts through the reorganization of the company.
    The bankruptcy was pushed through by creditors in July, including Česká spořitelna and Glancus Investments from the PPF group. The insolvency administrator Hala also proposed the bankruptcy.
    Creditors have submitted claims against ECM totaling a nominal amount of 9.5 billion Czech crowns. The insolvency administrator recognized the validity of only just under two billion crowns of these liabilities. Some claims were also submitted by companies that form a conglomerate with ECM. Most of the real estate company's debts are obligations from the issued bonds.
    ECM was founded in 1991 by entrepreneur Janků, who still leads the company. The company is primarily known for the construction and projects of high-rise buildings in Prague at Pankrác.