Zoot, the Czech online fashion retailer that collapsed under the weight of its accumulated debt at the beginning of the year, is to be reorganized. Following a three-month period of protection from its creditors, a plan to get the company back on its feet will now be put before an insolvency court. The plan does not include bailing out shareholders and founders, while unsecured lenders would barely recover 10 percent of what they were owned. Natland, the investment group that acquired hundreds of millions of crowns in liabilities, will convert these debts into shares under the reorganization plan. Idnes.cz reports that the plan is supported by 100 percent of the secured lenders and by half of the unsecured lenders. Natland has pledged to provide operational capital and warns that unsecured lenders are unlikely to recover anything if the plan isn’t accepted and the company goes into bankruptcy.
