CPI Property Group - comment

The latest update doesn’t change anything for creditors. With €21bn in assets, a block on reducing assets beneath €535m will only have a small impact on operations. The litigation does however highlight the poor governance at CPI in the past. Like most property litigation, the final settlement will be a fraction of the claims. 

 Two funds (Investhold and Kingsdown) have claimed in a Cypriot court that they funded the growth of CPI and were due shares in the company, and not all loans to CPI were repaid. CPI disputes this. A US court said it had no jurisdiction when throwing the case out last year. Kingsdown was also a shareholder in Orco Group, which the main shareholder of CPI took over. That takeover has been subject to litigation in Luxembourg since 2018. The Luxembourg case is mainly on Radovan Vitek (the main shareholder of CPI).

 https://cpipg.com/storage/app/uploads/public/66a/a62/2f3/66aa622f3614b170397792.pdf