Illegality of ex-Transaero receiver’s actions upheld
MOSCOW, February 4 (RAPSI) – The Thirteenth Commercial Court of Appeals has dismissed an appeal against a lower court’s ruling over actions (inaction) of the former court-appointed receiver of Transaero air carrier Mikhail Kotov, who stands charged with 1-billion-ruble embezzlement ($15.3 million) and abuse of office, according to court records.
On October 19, the Commercial Court of St. Petersburg and Leningrad Region granted an application lodged by the Federal Tax Service’s St. Petersburg Directorate and declared illegal Kotov’s omission to file an application with a commercial court seeking Transaero head’s dismissal and additional measures to ensure the safekeeping of the debtor’s property as well as failure to perform financial analysis of Transaero business for 8 months in 2017. Moreover, the court ruled his inaction concerning disregard of the authorized body’s appeals as illegal.
On October 16, Moscow's Meshchansky District Court ordered detention of Kotov.
According to investigation, Kotov’s action resulted in embezzlement of the airline’s property worth over 1 billion rubles ($15.3 million). Moreover, he forged some documents to suppress crimes allegedly committed in conspiracy with the former Transaero CEO Alexander Burdin, the statement reads.
Burdin was reportedly arrested in absentia this August. According to investigators, he caused damage estimated at more than 1.7 billion rubles ($26 million).
Transaero found itself unable to pay its debts valued at 250 billion rubles (about $4 billion) in 2015. The government-approved plan of transferring 75% of company’s shares to Aeroflot failed. Its problems resulted in a large number of flight cancels and delays.
In October 2015, Sberbank and Alfa Bank filed bankruptcy petitions against the troubled airline. The Commercial Court of St. Petersburg and Leningrad Region initiated bankruptcy procedure against Transaero on December 16. The Commercial Court of St. Petersburg and Leningrad Region declared Transaero air carrier bankrupt in September 2017.