Shares of Prague-listed property company ECM Real Estate Investments fell up to 7 percent at the start of Monday’s trading session after one of the company’s bondholders requested early repayment. In a report issued the evening of April 1, ECM stated that Glancus Investments had asked for early repayment of bonds with a nominal value of Kč 137 million.
Komerční banka (KB) said in a report on the real estate sector today that it has dropped coverage of ECM Real Estate Investments and downgraded Orco Property Group to ‘Sell.’ The bank’s assessment for the Czech residential sector is particularly negative, with supply exceeding demand, rent deregulation and increasing foreclosure rates set to keep the market stagnant for the coming years.
Insolvency proceedings in Prague’s municipal court against developer ECM came to a halt Dec. 3 when the insolvency petition was withdrawn. The petition was lodged Nov. 4 as a result of unpaid interest on bonds valued at Kč 234,000. In October ECM decided to defer interest payments on the foreign bonds as a way to go ahead with the company’s debt restructuring plan.