BENGALURU: Luxembourg-based commercial landlord CPI Property Group said on Thursday that it has commenced an internal audit and engaged a law firm to review the company’s governance procedures, compliance policies, and allegations raised by short seller Muddy Waters.
Short-selling hedge fund Muddy Waters last week disclosed its bet against the credit of CPI Property Group sending a key bond of the company to fall by the most on record.
Muddy Waters had said CPI PG’s controlling shareholder, Czech billionaire Radovan Vitek, had misstated the value of the company. The report also said some income had been booked against real estate properties that were in fact empty plots.
Responding to the short seller report, CPI said in a statement on Thursday that it had never obscured its relationship with Vitek or his family. The company has said it believes Muddy Waters is “categorically wrong about CPIPG.”
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CPI Property Group, which owns properties in Central and Eastern Europe, said on Thursday that it is in discussions about potential sales of minority stakes in portfolios located in Poland and Germany.
CPI…
