MOSCOW, May 14 (RAPSI) – The Fourth Commercial Court of Appeals has upheld the introduction of a monitoring procedure against the Yakut Fuel and Energy Company, a subsidiary of troubled Summa Group, according to court records.

In January, the court commenced a supervision procedure in relation to the Yakut Fuel and Energy Company on the request of a local King-95 firm.

Razvitie, the self-regulatory organization of insolvency practitioners, challenged the ruling but as seen lost the appeal.

Currently, bankruptcy applications against the Yakut Fuel and Energy Company lodged by the Russian Agricultural Bank and businessman Pavel Zalin are also pending in court.

Moreover, in March, A-Property firm lodged two applications demanding to add the company’s 9.9-billion-ruble ($155 million) debt to the list of creditors’ claims. In April, a Russian subsidiary of Bank of China Limited filed a claim to include the Summa subsidiary’s 928-million-ruble debt in the creditor’s register. It will be considered on May 15.

Russia’s Sberbank has also filed two applications seeking to collect over 4.1 billion rubles ($61.5 million) in debt from the Yakut Fuel and Energy Company.

Summa Group owner Ziyavudin Magomedov and his brother Magomed are involved in the organization of a gang, embezzlement of 2.5 billion rubles (about $38 million at the current exchange rate) from the state budget and withdrawal of some of these assets abroad, investigators claim. Magomed Magomedov is also charged with illegal weapon possession. They have been detained along with ex-CEO of Intex construction company Arthur Maksidov.

At the same time, it was discovered that Ziyavudin Magomedov and his brother had been additionally charged with stealing 300 million rubles ($4.6 million) during the construction of a highway in South Siberia in September 2014.

The defendants have pleaded not guilty to the charges.

Moreover, according to investigators, French authorities have opened a tax evasion case against ex-wife of Ziyavudin Magomedov Olga, who owns several restaurants in France. No other details have been disclosed.