Arca Investments – The creditors and the Court accept the Reorganization plan

26. 07. 2022


PRAGUE (26 July 2022) – At the Creditors' meeting the majority of creditors accepted the reorganization plan for Arca Investments (the parent company of the Group). The accepted plan was also confirmed by the Court without any delay the same day.

The majority of creditors accepted the Reorganization plan at the Creditors' meeting which took place on 26. July 2022 in Prague, Czech Republic. According to the results of voting announced by the District Court in Prague, the three out of four Creditors' groups voted in favour of the plan. The support came from secured creditor, majority of individual unscecured creditors (which hold the largest amount of all claims) as well as the group of Shareholders. The group of so called Group creditors voted against the Reorganization plan. As all four groups did not support the plan unanimously, the final confirmation and approval of the plan was made by the District Court.  

"We see accepting of Reorganization plan by Creditors as a positive sign and are glad, that the solution proposed by us received the wide support and was accepted. Also, we welcome the confirmation and approval of the plan byt the District Court in Prague. Now of course, we are heading towards the most important part of the plan which the implementation of the itself plan is," said Peter Janiga, the Manager responsible for restructuring of Arca Investments.

The main pillars of the Reorganization plan, which was designed by consultants from PwC Czech Republic and lawyers from Dentons, are the simplification of the existing complex structure and the development of assets in such a way that, within a five-year horizon, it is possible to sell them at a price approximately three times higher than the current bankruptcy value according to an expert opinion. In order to do that, a new NOAH structure will be created which, in particular, will help to straighten out the complex relationships between individual companies located in different jurisdictions.

In cooperation with the Creditors' Committee, a professional management will be appointed and will manage NOAH under the supervision of the creditors and the Insolvency administrator. The Secured creditor will receive one hundred percent of the value of their claims, Unsecured creditors should receive around half of the value of the claims (including the Slovak part of the insolvency proceedings). The Debtor's shareholders will not receive any payment.

"This represents another significant milestone for Arca Capital after the creditors and the Court confirmed the Restructuirng plan for Arca Capital Slovakia approximately a month ago. These decisions bring the clarity and legal security to ongoing processes, so the Group itself can focus on successful implementation of the plan and developing the business to grow the value of assets," said Rastislav Velič, the Chairman of the board of Arca Investments and the majority shareholder of the Group.       


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