Sovietsky hotel lessee's bankruptcy case to be reviewed on March 1
MOSCOW, February 24 - RAPSI. The court declared on Friday a recess until March 1 in handling Hotel Sovietsky lessee's application for own bankruptcy.
The recess is needed for Hotel Sovietsky to produce evidence of settling its debt to a lender.
Earlier, the company said its bankruptcy application was filed as Hotel Sovietsky has insufficient assets to repay the debt. Its liabilities amounted to 467.4 million rubles ($15.7 million) by November, including 309 million rubles ($10.4 million) in principal debt and 3 million rubles ($100,800) in receivables.
Hotel Sovietsky has rented the hotel building since the late 1980s. According to the company, it has performed major repairs and the funds spent on the works were set off against the rentals until the hotel was sold to a new owner in 2007. The new landlord has refused to recognize it and demanded rent payment as of 2007. As a result, the company had to file for bankruptcy.