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  "documentTitle": "CPI Property Group (CPIPGR)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2023-11-21 00:00:00",
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  "notes": "This slide details a specific financial maneuver involving a superyacht (Hull 607) and related party transactions between Vitek, Polma 1, and CPI PG.",
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      "text": "Our interpretation is that Vitek paid (including in loans) a total to Eurocraft of €16.0 million, received a brand new superyacht, and then got CPI PG to reimburse him at least €8.8 million in the form of a loan.",
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      "text": "Our interpretation is that Vitek paid (including in loans) a total to Eurocraft of €16.0 million, received a brand new superyacht, and then got CPI PG to reimburse him at least €8.8 million in the form of a loan.",
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      "text": "As the accounts presently stand, we can see that Polma 1 still owns 49% of Eurocraft. However, Eurocraft still shows an outstanding receivable for €6.2 million, presumably for the second half of Hull 607. CPI PG shows that Vitek owes it €8.8 million as part of this transaction.1,2",
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      "text": "In 2011, Vitek had taken delivery of a superyacht from Eurocraft, which he named the Baron Trenck. (BT 2 Vessel seems to be a nod to the replacement nature of the new superyacht at issue.) In 2020, Eurocraft appeared to be in dire financial straits. It was building one hull – Hull 607 – but had seemingly run out of money. Vitek, through Polma 1, loaned Eurocraft €9.8 million, which it used to repay its bank debt. Polma 1 became a 49% owner of Eurocraft. Vitek also paid a €6.2 million deposit for Hull 607.",
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      "text": "BT 2 was established in November 2020 as a 100%-owned subsidiary of Polma 1. On June 25, 2021, BT 2 took delivery of Hull 607. On the same day, CPI PG acquired Polma 1. BT 2 was transferred to Vitek's Aspermont S.à.r.l on July 27, 2021.",
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      "text": "When CPI PG acquired Polma 1 through a disclosed 2021 related party transaction, Vitek seemingly used the transaction and the Group to finance a majority of the price he paid for a superyacht to replace his existing superyacht. The first red flag in this transaction is that CPI disclosed almost all of the subsidiaries it acquired through Polma 1, but it failed to disclose BT 2 Vessel Ltd. (\"BT 2\"). BT 2 owns the new superyacht, but was promptly transferred to Vitek after taking title. CPI also misled investors about the nature of Polma 1's 49% stake in the superyacht's manufacturer, Eurocraft Cantieri Navali.",
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      "text": "1 CPIPG Management Sàrl Financial Statements 2021, Pg. 8, Note 15, Related Party Transactions. This note shows BT 2 paying interest and shows Aspermont S.à.r.l. owed €8.757 million. Aspermont is Vitek's holdco which acquired BT 2 Vessel in 2021.\n2 CPIPG Management Sàrl Financial Statements 2022, Pg. 9, Note 15, Related Party Transactions. This note shows Aspermont S.à.r.l. still owing €8.757 million, but BT2 paid no interest in 2022.",
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      "text": "BT 2 Vessel Ltd. Overview",
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