The news for developer CP Praha continues to look bleak as the online daily aktualne.cz reports that the company had declared itself insolvent and requested an approved reorganization. The court has called on other creditors to join the insolvency proceedings. UniCredit bank is likely to top that list, as CP Praha owed more than CZK 785m from a CZK 3.2bn loan taken out for the residential project Central Park Praha in 2006. CPP asked for an extension to the loan, but the bank reportedly refused this. The project ran into trouble in 2009 when falling residential prices called into question the developer’s ability to pay back the loan.
