MOSCOW, September 3 - RAPSI. The Sixteenth Commercial Court of Appeals has reversed the court judgment declaring the Istok distillery bankrupt, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) Monday.

Istok is a major Russian alcoholic beverage producer, and the leader in the Russian sparkling wines market. Upon the debtor's request, the court has reversed the North Ossetia-Alania Republican Commercial Court's April 27 decision to deem Istok bankrupt upon the tax service's request.

The court placed the company under administrative review until October 18 and approved Nikolay Kokordia as its administrator.

The appeals court has said the case will continue under supervisory procedure. It added that the administrator's financial analysis cannot reveal the company's true financial condition, so any declarations that it is bankrupt are premature.

The court has asked Kokordia to prepare another analysis, now under supervisory procedure.

In December 2010, the chairman of Istok's board said his company would overcome its financial turmoil within four years if its primary lender, Sberbank, restructures its 2.4 billion ruble ($71.6 million) debt.

Earlier, the governor of Ossetia said in a press release that the republic would spare no expense to save the distillery.

The press release said the company's overdue 700 million rubles ($21 million) in liabilities prompted the tax authority to apply for Istok's bankruptcy.