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  "documentTitle": "CPI Property Group (CPIPG)",
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  "authorName": "Carson C. Block",
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      "text": "When cash flow is tight and liquidity for paying down CPIPG’s expensive bridge loan is in your own words a “priority above all else”, why did management increase lending to Vitek?",
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      "text": "a. When cash flow is tight and liquidity for paying down CPIPG’s expensive bridge loan is in your own words a “priority above all else”, why did management increase lending to Vitek?",
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      "text": "c. Did CPIPG allow Vitek to PIK his interest obligation? CPIPG purportedly charged Vitek 5% interest; however, CPIPG’s cash flow statement shows only €3.0 million of interest received, a small fraction of the €39 million in interest income reported the income statement.",
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      "text": "b. Why cancel €273 million of the debt receivable in exchange for luxury properties “in various stages of development” when i) neither this type of property nor this market are core to CPIPG and ii) valuations of incomplete properties seemingly are even more easily manipulated than for complete properties – particularly given Vitek and CPIPG’s history of highly questionable valuations?",
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      "text": "1. In 2H 2023, CPIPG’s lending to Radovan Vitek’s company Senales Invest increased to approximately €416 million from just €169.6 million at YE 2022. Two days before the year end, €273 million of Vitek’s debt was offset in a non-cash transaction by means of a transfer of 20 luxury villas in Dubai, 17 of which were “various states of development.” The €273 million appears to be include principal and interest. CPI financed this lending to Vitek through borrowings of its own -",
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      "kind": "paragraph",
      "text": "Dear Mr. Greenbaum: We note you most value the qualities “transparency, openness and solid business logic.” In this light we submit the following questions with regards to CPIPG’s 2023 annual results.",
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      "text": "“transparency, openness and solid business logic.” — CPIPG 2023 management report",
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      "text": "1 CPIPG 2023 management report, p. 4 2 CPIPG 2023 management report, p. 118, 149 3 CPIPG 2023 management report, p.4 CEO’s letter... 4 2023 MR, p. 136 5 2023 MR, p. 64, 73",
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      "text": "Muddy Waters Questions for CPI PG’s April 8, 2024 Annual Results Conference Call",
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