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Major developer appeals $20 mln award to Alfa-Bank

14:01 23/11/2011

MOSCOW, November 23 - RAPSI, Alyona Yegorova. A court has postponed until November 30 its hearing of an appeal against a court decision to award Alfa-Bank $20.16 million in its lawsuit, the court told the Russian Legal Information Agency (RAPSI) on Wednesday.

Established in 1990, Alfa Bank is one of the Russia's ten leading banks.

The Moscow District Federal Commercial Court did not specify the reason for the postponement.

On July 5, the Moscow Commercial Court sided with Alfa Bank in its $20.167 million lawsuit against Timiryazevskoye, a company associated with owner of major developer MosCityGroup Pavel Fuks, including $20 million in principal debt. The judgment later came into force after the appellate court upheld it in September.

MCG was established in 2006. Its project portfolio comprises seven million square meters including two skyscrapers at the Moscow City business center.

The appeals against court judgments were filed by MosCity Group Corporation ltd., MCG International Holding limited (B.V.I) and MosCityGroup's owner Pavel Fuks, who are the third parties in the case.

The court satisfied the bank's claim almost in full, but it decreased interest and penalties. The bank initially claimed $20.24 million.

According to Alfa-Bank, a $20 million loan at a 13-percent annual interest was granted to MCG on November 27, 2009. Estafeta and Timiryazevskoye were the guarantors for the loan.

The bank later notified MCG that it would require an early repayment of the loan as MCG had failed to pledge an unfinished development project as a security as required by the contract. Additionally, MCG owed the bank money on other loans, Alfa-Bank said.

MosCityGroup in its turn said it transferred $20 million in March 2011 to pay the debt. However the bank set off the money for another MCG's loan debt.

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Major developer appeals $20 mln award to Alfa-Bank

14:01 23/11/2011 A court has postponed until November 30 its hearing of an appeal against a court decision to award Alfa-Bank $20.16 million in its lawsuit.
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