<p>Zadlužený developer ECM za pololetí prodělal kolem 64 mil. Kč</p> <p>Indebted developer ECM lost around 64 million CZK in the first half of the year.</p>

Project CITY at Pankrác Plain

Prague - The development company ECM Real Estate Investments (ECM) has recorded a loss of 2.6 million euros in the first half of this year, which is approximately 64 million crowns. This follows from a report published today by the insolvency administrator regarding ECM's financial situation in the insolvency registry. In the same period last year, the developer incurred a loss of 41.1 million euros (around one billion crowns). According to the original financial calendar, ECM was supposed to release its results on Wednesday. The company has been in bankruptcy since July.
    In the first six months of this year, ECM had an operational loss of 1.5 million euros (about 37 million crowns). A year ago, the company reported an operational loss of 25.9 million euros (approximately 633 million crowns).
    Creditors have claimed receivables against ECM amounting to a nominal value of 9.5 billion crowns. Insolvency administrator Ivo Hala recognized the validity of only nearly two billion crowns of these liabilities. Some creditors, whose claims were not recognized by the insolvency administrator, are now suing him over this issue.
    Among this group of creditors of ECM is also Astin Capital Management. This firm represents a portion of the holders of ECM's euro-denominated bonds. Its registered claim of around 3.1 billion crowns is the largest in the insolvency proceedings against ECM, but insolvency administrator Hala did not recognize it. Astin Capital has also challenged the decision to declare bankruptcy on ECM at the Constitutional Court.
    The general director and founder of ECM, Milan Janků, has initiated another lawsuit. He proposed to the Prague High Court in an appeal to annul the decision regarding the bankruptcy. Among other reasons, alleged errors during the court proceedings of the bankruptcy are cited.
    The bankruptcy was initiated by creditors, including Česká spořitelna and Glancus Investments from the PPF group. The bankruptcy was also proposed by insolvency administrator Hala. In contrast, ECM's head Janků and Astin Capital wanted to resolve the company's debts through reorganization.
    ECM was founded in 1991 by entrepreneur Janků, who still leads the company. The firm is mainly known for the construction and projects of high-rise buildings in Prague at Pankrác.