Court sends JHMD into bankruptcy
The court banned the company from handling its assets and transferred the control of all property to a liquidator.
České Budějovice regional court rejected the request of the indebted Jindřichův Hradec Local Railways (JHMD) for a reorganization. In the insolvency proceedings, which have been going on since September 7, the court declared the company bankrupt.
The court has yet to decide on bankruptcy resolution, saying that the company’s situation needs to be examined in detail. The court prohibited JHMD from handling its assets and transferred the disposal powers to a liquidator, including settling employment claims.
JHMD has liabilities of over CZK 160 million. No trains have been running on its lines since Monday, October 3; the company’s safety certification has expired. JHMD’s management has asked the court to approve a reorganization, which would consist mainly of recovering alleged debts from the Vysočina Region and selling part of the line to the state.
The court expressed doubt about the truthfulness of the information provided by the company about its financial situation and questioned the completeness of the list of creditors. It also questioned the claim of the CEO and majority owner of JHMD, Boris Čajánek. According to the documents submitted, JHMD owes Čajánek almost CZK 39 million. A year ago, when the company was under court protection from its creditors, this claim was not disclosed.
The court ordered a hearing to review the filed claims for January 13, 2023. A meeting of creditors will be held after the hearing.
Edited and translated by Lucie Trávníčková