Lucerna battle draws to a close

Former President Václav Havel's sister-in-law Dagmar Havlová is almost at the end of her decade-long battle for ownership of the full Lucerna Palác building on Vodičková street.

The Prague High Court ruled April 4 that the other half of the complex is not part of the bankruptcy proceedings of Chemapol Reality (CHR). CHR had sold the half to Havlová at discount in 1999 after she bought CHR's debt during bankruptcy proceedings. The bankruptcy administrator challenged the validity of the purchase and included Lucerna in bankruptcy proceedings, after which Havlová brought the administrator to court.

The court verdict can still be appealed, but Havlová has told media she plans to go ahead with significant repairs on the building and does not plan to shut down the building or increase rents.

"It makes me very happy. This has finally broken the vicious cycle of the past 10 years. The case was assigned to another judge who put forth clear questions and got clear answers to them, especially from professionals," Havlová told Internet news site iDnes.cz.

This is the second time the Prague High Court has heard the case.

Lucerna Palác, a complex of shops, restaurants, movie theater and music club, was built by Havel's grandfather in the early 1900s and was confiscated from the family by the communist regime. In 1992, it was returned to Havel, then president, and his brother Ivan as part of restitution proceedings. Ivan gave his half to his wife, Dagmar Havlová.

Havlová attempted to buy the other half from Václav Havel, who did not reach an agreement with her and sold his half to CHR for 200 million Kč in 1997. When the company went bankrupt in 1999, Havlová bought the company's debt for 230 million Kč with a bank loan. She paid 30 million Kč in cash and used 115 million Kč in the debt to pay Václav's former half, and then forgave the rest of the company's debt.

The bankruptcy administrator argued that the half had been sold at a 55 million Kč discount, for 145 million Kč, at a time when CHR was not authorized to make such significant financial decisions.

Lucerna Palác has a long history, its Grand Hall traditionally functioning as a concert and dance hall. Jazz greats like Louis Armstrong and Duke Ellington played there during the initiatives to spread Americana to the Soviet bloc. Actor, playwright and writer Jan Werich made his last public appearance at Lucerna in 1977. In the 1970s and '80s, the club continued to host jazz and rock concerts and be a stronghold for dissidence, and to this day functions as a concert hall.

Cat Contiguglia can be reached at
ccontiguglia@praguepost.com