Cosmetics giant subsidiary's bankruptcy process extended by six months
MOSCOW, October 27 - RAPSI, Alyona Yegorova. A commercial court extended on Thursday for another six months the bankruptcy proceedings against Capital Estate, the Russian Legal Information Agency (RAPSI) reports from the courtroom.
Capital Estate is a real estate subsidiary of the Arbat Prestige cosmetics retailer.
The extension request was filed by the company's bankruptcy administrator. The next session of the bankruptcy report hearing has been scheduled for April 26.
The Moscow Commercial Court declared Capital Estate bankrupt on October 28, 2010 and launched six-month bankruptcy proceedings.
The administrator's representative reported in 2010 that the current creditors' claims totaled 2.204 billion rubles ($72 million).
The collapse of the Arbat Prestige began in January 2008 when the companys owner Vladimir Nekrasov was arrested on suspicion of evading taxes worth 50 million rubles.
On December 18, 2008, Nekrasov and businessman Sergei Shnaider (alias Semion Mogilevich), who was arrested alongside him, were charged with tax evasion worth 115 million rubles. However, the criminal case against Nekrasov and Mogilevich was closed in April.
In early 2008, Arbat Prestige operated 98 cosmetics stores. Its total turnover increased by 36.2 percent in 2007 to $471 million.