Matt Atlas

Arca Capital’s Creditors Reject Restructuring Plan

On Monday (September 27), the five-member creditors’ committee did not approve Arca Capital Slovakia’s restructuring plan and returned it to the company for revision. Arca Capital Slovakia has 15 days to submit the revised plan and the creditors’ committee will have 15 days to renegotiate the revised plan.

Viera Krupova from DivMedia informed on Tuesday. Krupova did not specify creditors’ committee requirements. Two members of the committee, Vladimir Kozovy and Ludovit Olejar, both represented by the law firm Fardous partners, demanded an increase in the satisfaction of unsecured creditors to at least 95% of the value of receivables from the originally proposed 67%.

Repayment calendar and new administrator

Moreover, they require Arca Capital Slovakia to create a repayment schedule on the basis of which regular instalments would be guaranteed to creditors on a quarterly basis, starting as early as 2022, i.e. three months after the court approved the restructuring plan.

Kozlovy and Olejar consider the administration and management of the company during the restructuring to be extremely important. According to them, Arca Capital Slovakia should be managed by a new and independent top-class manager, who would be elected by the creditors’ committee. They also have no confidence in the proposed trustee for the supervisory board, and therefore propose to revise the restructuring plan in this aspect as well, and to nominate a new trustee, also with the approval of the members of the creditors’ committee.