Work detail

Crystalex Nový Bor: From IPB Heritage

Author: Mgr. Tomáš Čása
Year: 2011 - winter
Leaders: doc. JUDr. Tomáš Richter LL.M., Ph.D.
Consultants:
Work type: Finance, Financial Markets and Banking
Masters
Language: English
Pages: 102
Awards and prizes:
Link:
Abstract: The presented study describes and analyzes the course of insolvency proceedings in
Crystalex Nový Bor, one of the largest corporate bankruptcies resolved under the
Czech Insolvency Act. The core of the work focuses on description and assessment of
the case from the point of view of economic efficiency. The analysis of a large
corporate bankruptcy case defined the key aspects of the proceedings and evaluated
them in the context of the existing legal framework. The case confirmed strengthened
position of secured creditors, but could not find evidence for opportunistic abuse of
this position. The Czech Insolvency Act respected pre-bankruptcy entitlements and
the absolute priority rule. On the other hand, the course and the role of the
moratorium and delays in the distribution of the liquidation proceeds were weak
aspects of the proceedings. The selected method of insolvency resolution through
liquidation and sale of the core operating assets together under one contract appeared
the most plausible from the point of view of the type of distress in the company.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance