Organizer of Russian Formula One Grand Prix at Sochi declared bankrupt
MOSCOW, June 1 (RAPSI) – A Krasnodar region court has ruled that OAO Formula Sochi, an organizer of Russia's Formula One Grand Prix, is bankrupt, RIA Novosti reported on Monday.
Formula Sochi is a company wholly owned by the Krasnodar Territory government through its property management department. It was set up to organize the first ever Formula 1 Russian Grand Prix, which was held in Sochi, the venue of the 2014 Winter Olympic and Paralympic Games.
The court said the company owed about 5.8 million rubles ($109,500) to its creditors, while its available assets were only worth 1.4 million rubles ($26,400).
The hearing of the results of the bankruptcy proceedings has been set for November 23, 2015.
This is not the first lawsuit filed against Formula Sochi. In late 2014, the Commercial Court of the Krasnodar Territory dismissed a lawsuit filed by the local property management department to collect the part of the Formula Sochi charter capital which its top managers allegedly “used improperly.” The defendants in that lawsuit were former CEOs Alexander Bogdanov and Sergei Bondarenko and former office manager Alexander Belousov.
The first ever Formula 1 Russian Grand Prix was held at Sochi Autodrom on October 11-12, 2014.