Bankruptcy rather than restructuring was the verdict of a creditors' committee meeting over insolvent property developer ECM. The final verdict was not surprising given that the biggest group of creditors from international financial institutions who were backing restructuring were not allowed to take part in the vote. They have vowed to fight he commitee decision with the ECM saga far from over.
The fate of the insolvent property developer ECM will be determined on Wednesday, August 20; the company’s creditors are calling for the restructuring of the firm but the appointed insolvency administrator, Ivo Hala, is rejecting their demands. What’s at stake is not “just” the debts, but the very existence of ECM. Some observers say that if the rights of creditors aren't recognized the company will be declared bankrupt.
Belgian real estate developer Serge Borenstein’s Karlín Real Estate Group has sold the Keystone office building in Prague 8–Karlín to German real estate funds GLL Real Estate Partners for an undisclosed sum. GLL’s interest in the property was reported in Czech Position last year at an estimated acquisition price of €550 million.