MOSCOW, May 14 (RAPSI) - The Moscow Commercial Court has recognized the Premier Estate property dealer bankrupt and has introduced a six-month receivership, RAPSI reports from the courtroom on Tuesday.

On Monday, the company's receiver said that its creditor register states a total debt of 15.883 billion rubles ($506.15 million).

In December last year the court ordered the company to be monitored, following a bankruptcy lawsuit filed by the Bank of Moscow. The court entered claims totaling 13.747 billion rubles ($438.1 million) in the creditor register.

The Bank of Moscow press office earlier told the Prime business news agency that Premier Estate had taken no action to honor its liabilities to the ban, hence the bank turned to the courts. The loan to Premier Estate was an example of the risky lending practices often used by the bank's former management, the press office noted.

Premier Estate used the funds borrowed from the bank in 2009 to buy a 58 hectare land plot in western Moscow from Ramenskaya trade house, owned by Yelena Baturina, Russia's richest woman and wife of former Moscow mayor Yuri Luzhkov.

Investigators believe that the Bank of Moscow executives knew the pledge information provided to Premier Estate was false. However, they confused the bank's management by fraudulently assessing the credit risk.

These developments led to an opening of a criminal case against former Bank of Moscow CEO Andrei Borodin and his deputy Dmitry Akulin. Borodin, under whom the Bank of Moscow functioned as the city's chief investment vehicle under Moscow Mayor Yury Luzhkov, fled to the UK in 2011.

In November 2011, Interpol's Russian office issued a red notice against Borodin and Akulinin, stating that they were wanted by Russia for fraud. Borodin claims that the criminal cases against him and his first deputy were opened on false premises and are politically motivated.

Premier Estate was established in 2011, according to its website. It deals in residential and commercial property.