MOSCOW, August 28 - RAPSI. The Moscow Commercial Court has satisfied VTB's application to recognize the Astoria Group developer as bankrupt, the court told the Russian Legal Information Agency (RAPSI/rapsinews.com).

The court initiated a six month bankruptcy procedure for the company.

Vyacheslav Barinov was appointed as the developer's bankruptcy manager.

Barinov said it is impossible to restore the debtor's paying ability, and no evidence of planned or fraudulent bankruptcy were found. Six creditors' claims amounting to 2.63 billion rubles ($85.32 million) were included in the bankruptcy schedule.

The Astoria Group was established in 2004. It is in the business of constructing multifunctional complexes.

Previously, VTB Bank, which is the Astoria Group's sole shareholder, submitted a bankruptcy statement regarding the group. The court rated the group's debt of $59.62 million as third-priority debt.

The Astoria Group confirmed its debt at the hearing.

VTB Bank, Russia's second largest bank in terms of assets, was established in October 1990. The government is the bank's primary shareholder, with an 85.5 percent stake.

VTB Bank mostly works with corporate customers.