CPI Property Group - comment

Recent reports have again highlighted the long-running €535m litigation against CPI Property Group and Radovan Vítek in Cyprus. The case is not new: provisional measures were originally issued in December 2022 and CPI has disclosed the litigation in its bondholder reporting since early 2023. The Nicosia court maintained the measures in July 2024, although CPI has consistently stressed that this did not determine the merits of the claim and has appealed the decision. CPI subsequently stated that the injunction was not an asset freeze in the conventional sense and, if effective, would require CPIPG and Vítek to maintain total assets above €535m rather than restricting specific bank accounts or preventing normal business operations.

The latest reports allege that assets were subsequently transferred between entities and trusts while the litigation was ongoing. We have not seen independent confirmation of these allegations, and therefore view this primarily as a re-emergence of a historic legal dispute rather than a new credit event. That said, the issue remains worth monitoring given CPI's leverage and the potential for further litigation or negative publicity around the group's controlling shareholder.

https://artvoice.com/vitek-moved-his-money-while-the-court-said-freeze