Commercial Litigation Weekly Calendar (January 16 - 19)
Central Partnership Sales House vs CP Digital
The lawsuit is centered on 13 contracts signed by the Central Partnership Sales House and CP Digital between 2007 and 2011 on the distribution of Central Partnership's films.
The plaintiff holds that CP Digital has not paid the amount due under the contracts in full and seeks 52.4 million rubles ($1.66 million) in debt and 17.9 million rubles ($567,000) in penalties.
Central Partnership is Russia's largest distributor and maker of motion pictures and television products. It gained 294.8 million rubles ($9.3 million) from film distribution in 2011 to be placed 1st among other distributors.
CP Digital was established in 2000. It is a leader on the Russian DVD market.
Imex Capital Incorporated ltd vs PIK Group
Imex Capital Incorporated Ltd. seeks to recover 1.065 billion rubles ($34.5 million) in debt from PIK Group.
Businessman Andrei Oskolkov and PIK Group entered into a contract on the sale of a 100-percent interest in Izh-stroy in June 2008. As the purchaser, PIK was obligated to pay 1.835 billion rubles ($59 million) in four installments by March 2009. However, the third and fourth installments were not paid.
Oskolkov assigned his rights under the contract to Imex in December 2009.
PIK has contested the validity of the assignment agreement between Oskolkov and Imex.
Founded in 1994, the PIK Group became the most highly valued Russian development company with an IPO in London in 2007. The company's capitalization exceeded $12 billion at the time. It is mostly involved in property development, construction and sale.
In Re International Industrial Bank (Mezhprombank)
Mezhprombank, one of the leading Russian bank institutions, linked to former senator Sergei Pugachyov's United Industrial Corporation was declared bankrupt December 7, 2010. Bankruptcy proceedings were initiated for one year.
In November 2010, a spokesperson for Mezhprombank's temporary administration declared in court that the bank's assets were estimated at 62.2 billion rubles ($2.04 billion) while the debts amounted to 92.285 billion rubles ($3.05 billion). According to him, the bank's risky credit policy resulted in its insolvency.
The court will consider the extension of bankruptcy proceedings against the bank.
Sberbank / Demoginet Limited vs Techinvest
Demoginet Limited seeks to recover $167.1 million from Techinvest, a development company established to build the Eurasia Tower at the Moscow City business center.
The claim centers upon Techinvest's default in its contractual obligations according to a June 2008 loan agreement.
Sberbank is seeking foreclosure on the property pledged by Techinvest as a security for the loan.
Eurasia Tower was planned to be 70-story skyscraper with a spatial area of over 208,000 square meters at the Moscow City business center. The skyscraper was to host offices, apartments, a shopping mall, restaurants.
Techinvest is a developer established by the MosCityGroup and the Eurasia investment and industrial group to build the Eurasia-Tower at the Moscow City business center.
ST Development vs Moscow Government
The plaintiff, businessman Shalva Chigirinsky's ST Development, seeks to recover $151.430 million in losses sustained as a result of its efforts to honor a contract to rebuild the Rossiya Hotel in Moscow, as well as a relevant investment contract.
ST Development, the project's major investor, started dismantling Rossiya hotel in February 2006. The developer planned to build a new multi-purpose complex designed by British architect Norman Foster. However, the company had to freeze the project after Chigirinsky faced serious financial troubles in 2008.
Development company vs Moscow
Kurskaya Ploshchad development company requests from the Moscow government to terminate investment contract to develop a three-star hotel. It also seeks 5.6 billion rubles ($182.6 million) in damages, of which its lost profits amount to 4.195 billion rubles ($136.8 million).
The Moscow government and Kurskaya Ploshchad signed a co-investment contract in December 2005. The company was to invest 99 percent of the project cost. The Moscow government was to invest one percent.
In Re Mezhprombank Plus
Mezhprombank Plus is a subsidiary of International Industrial Bank (Mezhprombank), linked to Sergei Pugachyov's United Industrial Corporation. It was declared bankrupt December 23, 2010.
Mezhprombank itself, one of the leading Russian bank institutions, was declared bankrupt December 7, 2010.
Estate Museum vs Defense Ministry
Arkhangelskoye Estate Museum seeks to quash the auction for the sale of a land plot within the museum's preservation area. The Defense Minister ordered to sell the 20.67 hectare land plot on June 21, 2011.
On August 16 Gradostroy company won the ministry's auction for the sale of 20.67 hectares near the estate museum for 754.493 million rubles ($24 million). Pursuant to tender documents, the land plot had a number of encumbrances.
The Arkhangelskoye Estate is a historical palace and park established in the late 18th century near Moscow. Renowned collector and art lover Prince Nikolai Yusupov bought Arkhangelskoye in 1810.