PRAGUE - Arca Investments has been informed about the High Court´s decision in Prague to suspend insolvency proceedings initiated at the IFIS investment fund request. Since the court grouped the original application for reorganization permission submitted by Arca Investments on 22 December 2020 to this proceeding, Arca requests that a new proceeding be initiated based on its insolvency petition.
Arca Investments has filed for insolvency in the Czech Republic. This is the place of the company´s main interests, which is decisive for determining the court to conduct insolvency proceedings. "It is necessary to resolve the situation that our company as well as other ones got into due to the COVID-19 pandemic and subsequent restrictions here in the Czech Republic. It means to reorganize Arca Investments and the entire Arca Capital group in the Czech Republic. More than 80% of our creditors come from here and most of our activities are concentrated here. Above all, however, we are convinced that insolvency proceedings in the Czech Republic will provide the best terms for our creditors," explains Rastislav Velič, the majority shareholder of the Arca Capital Group, in the re-submission of an application for reorganization permission to the Municipal Court in Prague.
If the reorganization is approved, Arca Investments will have 120 days to submit a reorganization plan. It will be prepared in cooperation with TARPAN Partners consultants and BADOKH, the law firm. "We are asking the Municipal Court in Prague for a reorganization that, according to our assumptions, will provide creditors with more than a 50% return on receivables and, thanks to clear legal rules and a publicly accessible insolvency register, will also enable a transparent reorganization process. The reorganization in the Czech Republic also complies with European case law and will create conditions for the expected entry of the foreign partner, Blantyre Capital," adds Velič.