František Dohnal, the former head of the Supreme Audit Office (NKÚ) who was forced to resign after being given a conditional prison sentence after blocking members of the lower house of parliament from carrying out checks on his office, will get a Kč 650,000 pay-off, the office’s controlling body has decided.
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.
A warning from Justice Minister Jiří Pospíšil that judges should not serve on comittees of sporting bodies if they are likely to be involved in legal or quasi-deliberations that could end up in the courts has fallen on deaf ears. The warning was issued after a football club owner highlighted the large number of Prague judges serving on national football association committees.
The Prague Stock Exchange (PSE) has suspended trade in shares of ECM Real Estate Investments, one of the biggest real estate development companies in the Czech Republic, following on a declaration of its insolvency by a Prague court on Tuesday.
Prague Muncipal Court has declared debt-burdened developer ECM insolvent on Tuesday. The company, which got into trouble during the economic downturn, filed for the move on May 17. The court still has to rule on whether to accept the developer's reorganisation proposal.
The insolvency proposal brought against ECM Real Estate Investments by Česká spořitelna (CS) bank has been rejected by Prague’s Municipal Court on the grounds that it was unclear whether the liabilities of the other creditors named in the case had yet reached the minimum 30-day overdue period.