Arca Investments, a.s. has applied to the relevant court for a temporary protection under the provisions of the Lex Corona law. The aim of this step is to use the time under the temporary protection to prepare an internal reorganization of the company and a plan to satisfy its creditors.
The preparation and the launch of internal reorganization of Arca Investments, a.s. is the task for the crisis management team which is currently starting its activities in the company.
The recovery process does not adversely affect the operation of the key projects of the Arca Capital Group and its subsidiaries as they remain fully operational.
Arca Investments, a.s. will inform about the next steps in a timely manner.
The Lex Corona law
On 22 April 2020, the National Council of the Slovak Republic approved an amendment to Act no. 62/2020 Coll. on certain emergency measures in relation to the spread of the dangerous contagious human disease COVID-19 (the so-called Lex Corona).
With effect from 25 April 2020, the amendment in question amended the temporary protection of entrepreneurs against the negative consequences of the spread of a pandemic to businesses in the Slovak Republic. The purpose of Lex Corona is to protect healthy companies from the domino effect of secondary insolvency caused by the shutdown of economies due to the coronavirus pandemic.
During the period of temporary protection, no distribution of profits or other own resources, or any substantial disposal of the entrepreneur´s property, is permitted. The company under the temporary protection must make a sincere effort after submitting the application for protection, to find a solution to satisfy its creditors, giving priority to their interests over its own interests.