Prague Congress Centre posts a profit of CZK 70m last year

Prague, Feb 3 (CTK) - Prague Congress Centre (KCP), 100-percent owned by the city of Prague, posted a profit of Kc70m last year, head of KCP's marketing division Pavla Flidrova told CTK.

In the first half of 2009, KCP hosted a series of events related with the Czech EU Presidency due to which the number of events organised at KCP rose by 9 percent on the year to 341 last year, Flidrova added.

In 2008 and 2007, KCP ended in a loss of Kc71.8m and Kc27.2m, respectively. The company has a Kc2bn debt and is heading for bankruptcy, the server iDnes.cz said on Tuesday.

KCP should pay EUR3.3m (around Kc90m) in April but lacks sufficient financial means to pay for the installment. According to the server, the city of Prague is not likely to find the money, either. Unless creditors wait, bankruptcy will be declared. KCP's board last week approved a plan suggested by the company Deloitte to declare a tender whose winner should restructure the company's debt. But according to the server, there will not be enough time to implement the tender by April.

According to Prague Deputy Mayor and KCP board of directors chairman Milan Richter, three companies, including foreign ones, showed interest in KCP, mostly in the main building. That, however, is essential for the city and Richter said he wants to restructure debt, sell only the redundant property and keep the building.

KCP's portfolio includes the Holiday Inn Hotel, Business Centre and other property the value of which Deloitte estimated at Kc1bn-Kc1.1bn.

KCP's debt was accumulated due to reconstruction carried out ahead of the International Monetary Fund (IMF) and World Bank (WB) summit in 2000.

KCP, former Palac kultury (Culture Palace), was opened in 1981 as one of the largest buildings of its kind in Europe.