MOSCOW, October 25 - RAPSI, Sergei Feklyunin. A commercial court will hear on October 25 an application for the bankruptcy of Techinvest development company, the court told the Russian Legal Information agency (RAPSI).

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.

Eurasia-Tower is a 70-story building with an area of 208,000 square meters.

The application was filed by the City Residential and Public Buildings Design Institute.

According to the archives the parties were involved in two litigations in 2010 which ended up with settlement agreements. Techinvest, as the defendant, undertook to repay 38 million rubles ($1.2 million) in debt.

The developer incurred its debt under a contract whereby the institute committed to supervise the Moscow-City business center's construction.
Earlier the Moscow Commercial Court suspended its proceedings in the Sberbank (Savings bank) lawsuit for 5.2 billion rubles ($162.5 million) from Techinvest.

Sberbank granted a $500 million credit facility to Techinvest to implement the Eurasia-Tower project.

The lawsuit stems from the developer's failure to execute its obligations under a loan provided in June 2008. According to Sberbank, the loan will mature in 2013. However, the borrower has not fulfilled its contractual obligations since February, 2010.