Law firm Langmeier & Co. files insolvency petition against Arca Investments, a.s. in Slovakia. It does so in response to, among other things, a resolution of the Municipal Court in Prague dated 11 May 2021, which declared local insolvency proceedings with Arca Investments in the Czech Republic. It follows from this order that the main proceedings should take place in Slovakia.
JUDr. Jan Langmeier, together with his team and in agreement with the largest creditor represented by his firm, decided not to wait for further developments in the whole case and to file a petition for insolvency proceedings with Arca Investments with the court in Bratislava.
"In the Czech Republic, some players in this case are trying to overturn the resolution that only local proceedings will take place here. However, since I do not see this effort as very promising and, moreover, I have long maintained that Arca Investments is indeed as a Slovak company subject to local jurisdiction in Slovak courts, we will not wait any longer. Together with our client, who has a claim on Arca Investments, we are filing for insolvency proceedings in Slovakia," Langmeier commented on the current actions of his law firm.
In Slovakia, the former owner and founder of the Arca investment group, Pavol Krúpa, has so far attempted to bankrupt Arca Investments. However, according to available reports, he failed with his bankruptcy petition for formal reasons.
Langmeier & Co. will also use the expertise of its collaborating attorney Radek Vojtek, who specializes in bankruptcy and failure resolution of financial institutions and previously worked at the Czech National Bank. He will also argue before the Slovak courts the legal opinion that Arca Investments is a so-called black bank. Arca collected money from the public, which it did in the form of promissory notes and bonds, and at the same time provided loans that were directed inside the group. It thus met the definition of a banking institution without having a banking licence.
"We still stand by the fact that the supervisory authorities, especially in Slovakia, neglected to supervise the financial market in the Arca Investments case. The National Bank of Slovakia allowed a huge holding company to grow up in its market, which quite obviously behaved like a bank, without any control or regulation by the NBS. It is simply impossible to close our eyes to this part of the story, which ended in the biggest similar collapse in the history of independent Slovakia and the independent Czech Republic," explains Jan Langmeier.
Langmeier & Co. is ready to recover unsatisfied claims of its clients from the National Bank of Slovakia. "Thousands of creditors have lost money here, the claims can reach up to CZK 30 billion, according to my rough estimate. The idea that the insolvency proceedings will be able to satisfy 80 or even 100 percent of the claims, as some entities are announcing on the market, is in my opinion from the realm of dreams. And we believe that the state and its supervisory institutions should take responsibility. The way Arca operated was not sustainable in the long term. But someone allowed it to operate in this way. And that someone was the state."
Langmeier & Co., advokátní kancelář s.r.o.
JUDr. Jan Langmeier, attorney-at-law and insolvency administrator with special permission