Developer appeals $64.7 mln award to major airline
MOSCOW, December 30 - RAPSI, Alyona Yegorova. A construction company has appealed the court decision to award KD Avia airline $64.7 million, the court told the Russian Legal Information Agency (RAPSI /rapsinews.com).
KD Avia and GS Corporation entered into a contract in 2004, whereby GS Corporation was to construct terminals at Kaliningrad's airport. KD Avia paid for the work, but later argued that the contract was invalid because it was incomplete - neither the subject nor the terms of the contract had been agreed. KD Avia sought to recover from the defendant the amount of unjust enrichment for period beginning February 2007, and filed suit with the commercial court in September 2009.
KD Avia initially sought to recover 2.5 billion rubles ($78 million). However, the Moscow Commercial Court awarded it 1.658 billion rubles ($51.78 million) as the principal sum (the difference between the advances it received and the work it actually carried out) and 415.9 million rubles ($13 million) in interest.
KD Avia filed for bankruptcy with the Kaliningrad Regional Commercial Court in September 2009. According to the application, its liabilities totaled over 11.7 billion rubles ($365.4 million). The airline has been under administration since October 2009. The court declared KD Avia bankrupt on November 11, 2010.