A Polish court is expected to declare Gant bankrupt next week after the developer’s creditors refused to support any more restructuring plans. Market watchers point out that the Wrocław-based residential developer’s clients may end up paying off Gant bondholders, after the company failed to repurchase PLN 250m in bonds. Gant posted a PLN 58m loss last year and a PLN 400m loss in 2012.
“The company lacks any capital, and it’s not able to pay for any bankruptcy proceedings,” said Jarosław Horobiowski, a judge in a case. Market watchers point out that Gant shareholders have transferred the entire capital into other vehicles, mostly investment funds.
At the end of last year, the court initiated bankruptcy proceedings for Gant in a move that made it possible for the company to continue operations. But the court announced this week that the company failed to take this opportunity to begin paying off its debts. “What we’re looking at right now is every man for himself,” said Michał Hajduk, an attorney representing Gant creditors, told the daily Gazeta Wyborcza.
“Gant has been wailing us for months. We’ve been given two options: either we take a mortgage-backed flat, or we wait. And now, they might take away our flats to pay Gant’s debts,” Wojciech Tycholiz, a Gant client, told Gazeta Wyborcza.
