Following almost a year of speculation as to whether the Czech developer ECM would be declared bankrupt, or given a chance to restructure, the Prague Municipal Court has decided on the latter. Astin Capital, which represents a group of holders of ECM’s Eurobonds with a face value of over Kč 3 billion, has been given 120 days to present a restructuring plan. If it fails, individual creditors including ECM itself will be given a chance.
As the Czech proverb goes, “in every rumor there’s an element of truth.” For weeks now there has been speculation that the insolvency administration and subsequent decision to liquidate the property developer ECM Real Estate Investments has been directed by Czech billionaire Petr Kellner’s PPF Group. The latest developments suggest that this is indeed the case, or could it be just a combination of coincidences?