MOSCOW, March 30 - RAPSI. The Moscow Commercial Court has terminated the proceedings in the bankruptcy case of Kutuzov Riviera company, Mirax Group subsidiary.
Proceedings were terminated because Derzhava XXI security agency withdrew its petition against the company. The agency decided to withdraw the application as did not have the funds to finance the bankruptcy procedure. Meanwhile, it noted that the defendant did not pay its debt.
During the previous hearing, the debtor said the company is not operating and has no assets other than receivables amounting to about 13 million rubles ($429,000).
The debtor seeks the receivables under legal procedure and plans to apply it to repay its over 2 million ruble ($66,000) debt to the claimant. The security agency is the company's only creditor. The debtor also said it is negotiating a debt settlement with the plaintiff.
The agency said it does not have enough funds to pay the bankruptcy procedure. It added that it is seeking to recover the debt rather than have the debtor declared bankrupt.
The Mirax Group was founded in 1994. The total square area of the company's development projects amounts to 12 million square meters, including 825,000 square meters of completed development. Board Chairman Sergei Polonsky told media that in February 2010 that its debts amounted to $500 million, while one year before the figure was $700 million.