Czech courts are sending Arca Capital to go bust in Slovakia
Czech courts have turned down a second request of the Arca Capital group to restructure its debts in Czechia. The first proposal was filed by Ifis, one of the group’s creditors, and the second by the group itself. Czech courts argue Czechia is not the group’s key place of interests and the group should restructure its debts following the stricter Slovak legislation. Here, the group would have to return creditors at least half of its €900m debts, while there is no minimum in Czechia. Interestingly, the group’s largest creditor, J&T Banka, backs the proposal for Czech restructuring. J&T Banka has recently taken over all Poštová banka’s claims owed by the group. Arca Capital has not commented on its further course of action. It might appeal the Czech ruling, write off debts in Slovakia, or file for bankruptcy here. The temporary bankruptcy protection of its key Slovak company, Arca Investments, expires at the end of January.