The Czech online fashion retailer Zoot has completed its reorganization plan, which was due to be presented to a court in Prague by the end of October. The plan centers around a new investor, creatively named Company New, stepping in to take control. Company New is part of the Natland investment group, which seized control of Zoot by buying up hundreds of millions of crowns of bonds the company was unable to redeem. The plan is set to be voted on by Zoot’s 300 creditors who have no hope of collecting the CZK 761m they are owed. It’s expected they’ll be offered payment of 10 cents on the dollar within three years, or 2.5 percent immediately upon approval of the plan. Company New intends to trade its 108m in secured Zoot liabilities for control of the company.
