The Czech construction firm PSJ is back in insolvency. This time, however, it’s placed itself in insolvency as creditors continue to pile on demanding payment. “Negotiations to identify an appropriate financial partner were unsuccessful despite all of the attempts by the board,” said PSJ’s spokesman Miroslav Fuks. Along with problems in Russia, which it blamed on sudden changes in technical norms, PSJ also got into trouble with some of its Czech projects. Among them is the 30-story V-Tower it’s been building in Pankrac.
“In view of the high standards of the entire project there were complications and an increase in prices for subcontractor work,” said chairman František Vaculík. “Because of the type of structure, – a tall, thin building – and the need to coordinate various types of work and different subcontracting firms, there weren’t sufficient access communication canals. This led to scheduling delays and the financial consequences they bring.” The company officially owes 1,501 subjects a total of CZK 1.76bn.
