The bankrupt Průmstav Brno is selling its hectare site

Brno - Almost a hectare of land from the bankrupt company Průmstav Brno is available for nine million crowns. Bankruptcy trustee Marek Indra will offer the land and buildings with an estimated price of 11.4 million at auction at the end of August. The area is suitable not only for industrial use but also for residential development, Indra told ČTK today. The company went bankrupt this spring and owes its creditors over 70 million crowns.
The Brno construction company employed around 200 people as recently as last year. However, its revenues have been declining year after year. In 2002, when it held a one-percent share of the South Moravian market, it achieved 230 million crowns. In 2005, the company earned one-third less, 157 million, from renovations, turnkey construction, and demolition of old buildings.
The company operated in an area in Brno's Maloměřice district. It is now for sale. Anyone who pays a deposit of 1.5 million crowns can register for the auction. "According to the zoning plan, the land can also be used for building family houses, making it interesting for developers as well," the bankruptcy trustee believes.
In addition to real estate, Průmstav also owns machines and equipment. These items will be sold in several separate rounds in August. Even so, it is unlikely that enough money will be obtained to pay all claims. "Given the high claims of employees, which take precedence, there will probably be only a negligible amount left for other creditors," Indra estimates.
Průmstav Brno was a joint-stock company, and its list of owners is not publicly accessible. Indra stated that, according to the information available to him, the company was exclusively funded by Czech capital.