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Bank of Moscow Notorious Borrower Appeals Bankruptcy Ruling


The Premier Estate Company, which has borrowed more than 13 billion roubles from the Bank of Moscow, has appealed against a court decision that introduces a monitoring procedure in the company, the Russian Legal and Court Information Agency reports.

The Moscow Commercial Court allowed the bank’s claim on 10 December and introduced a monitoring procedure with respect to the Premier Estate Company. The Bank of Moscow as a junior lender with its claim in the amount of 13.747 billion roubles has been included in the company’s schedule of accounts payable. Alexander Alyukayev has been appointed the company’s interim manager. A court hearing on Premier Estate bankruptcy is set for 13 May.

The bank abused its right seeking the borrower’s bankruptcy, Yevgeniy Reznik, Premier Estate attorney, believes. All loan contracts have had liquid assets as collateral: a land plot worth 15 billion roubles; also, 100 per cent of the share of the Territorialnaya Direktsiya Ramenskaya LLC was pledged with the bank, he said. According to Reznik, the company had a buyer for the land, who was prepared to pay 15 billion roubles, but the bank refused the transaction.

The bank has rejected an offer of an amicable agreement. The attorney pointed to the fact that the bank had the right to enforce security without recurring to bankruptcy, but “the creditor went to extremes and seeks to liquidate the debtor.” The lawyer called the bank’s actions “ill-intentioned.”

The Bank of Moscow’s rejection of the borrower’s every offer to settle the problem with the loan shows that it wishes to go on with the criminal prosecution of the bank’s former head Andrei Borodin in a fraud case, attorney Dmitry Kharitonov, who defends Borodin’s interests, said. The lawyer explained that the loan episode forms the basis of a criminal case against the bank’s former top managers, and decision in the commercial court litigation could impact the outcome of the investigation.

The Bank of Moscow press service has told the Prime News Agency that “this loan is an example of doubtful crediting practices present in the activities of the former top management of the Bank of Moscow.” According to a press service spokesman, the loan has not been serviced since the time of its issuance; at present, the bank has formed a 100-per cent reserve for it.