Insolvency proceedings have been begun in Prague after following a move by a bondholder upset over CZK 234,000 in overdue interest payments. A group of holders of euro denominated bonds was scheduled to meet in London today, and according to E15 they were expected to push for further negotiations on a solution. Czech crown bondholders were to meet on Saturday. At this rate, though they may need instead to make appointments at their local barber. Here’s a screen shot of what we found online:
To be fair, this isn’t expected by many to be the straw that broke the camel’s back, and is most likely a clever way by a small creditor to get some money back. Those with more skin in the ECM game don’t appear to have an interest in ending it like this. There have been several examples recently of companies with small debts using similar tactics against giant companies. It’s likely to be resolved pretty quickly, though it’s a bureaucratic nightmare.