Prague Congress Centre (KCP)

In September 2013, EEIP was awarded a contract by Prague Congress Centre (KCP) for advisory services in connection with KCP’s financial restructuring. Prague Congress Centre, which is an owner and operator of one of the major convention centres in Central and Eastern Europe, has had a long-term problem with a high debt burden. EEIP’s main task was to restructure KCP and solve its high indebtedness by an entry of a new shareholder so that KCP maintained the trust of its clients as well its international reputation.

The assignment of EEIP, which served as the leading financial advisor to KCP, was to develop a financial restructuring plan of the company. The restructuring plan included analysis of financial and operational data of the company, the plan of restructuring measures and mid-term outlook of KCP’s performance. The scope of EEIP’s services also included preparation of materials for the Czech antimonopoly office (Office for the Protection of Competition) and the subsequent negotiations in connection with evaluation of the restructuring plan with respect to potential state aid following Articles 87 and 88 of EC Treaty.

The task was successfully completed in a record time in November 2013. During the financial restructuring, EEIP cooperated with other advisors of KCP, i.e. KPMG consultants and Císař, Češka, Smutný as the law firm. The transaction in the total amount of CZK 2.8 billion (EUR 102 million) is one of the first of its kind in the Czech Republic.

The detailed restructuring plan served as one of the points of departure for decision making process of the Ministry of Finance of the Czech Republic (MF CR) as a future shareholder of KCP. In December 2013, MF CR subscribed new shares of KCP worth CZK 2 billion (EUR 73 million), acquiring a 70% stake in KCP. In 2014, following the shareholder agreement between the City of Prague and the Ministry of Finance of the Czech Republic, the City of Prague will subscribe additional CZK 800 million (EUR 29 million) of new shares of KCP, so that the target stake of MF CR in Prague Congress Centre reaches 55%, while the remaining 45% will be held by the City of Prague.