A problematic credit

The Bank of Moscow may lose the 13,7 billion roubles, which it allocated for the buy-out of land from Elena Baturina. The committee of creditors of the land plot owner changed their minds about selling it.

The committee of creditors of Premier Estate CJSC tasked the trustee in bankruptcy with revoking the tender of sale of its property last October. So it is said in the minutes of the committee’s meeting. The company owns 100% of the shares of TD Ramenskaya LLC – the proprietor of the 55 hectares between Lobachevskogo St. and Matveevskoe railway platform in Moscow.

Elena Baturina, the spouse of the former Mayor of Moscow Yury Luzhkov, used to own TD Ramenskaya. She sold 58 hectares to an undisclosed buyer in the summer of 2009 in order to settle her accounts with creditors. It became known afterwards that Premier Estate CJSC was said buyer. The company Kuznetsky Most Development, which was close to the former top managers of the Bank of Moscow, was its shareholder.

The parties to the deal got more than they bargained for. The Bank of Moscow issued the credit for the purchase of the land in the amount of 12,6 billion roubles, and received 55 hectares as pledge. Vladimir Zhirinovsky, the leader of the LDPR, filed an inquiry with the Head Department of Internal Affairs of the capital, suspecting the Government of Moscow of misapplication of the budget funds – before issuing the credit, the Bank additionally emitted securities for 15 billion roubles, which were purchased by the Mayor’s Office.

After V.Zhirinovsky’s inquiry, a criminal case was initiated against unascertained employees of the Bank of Moscow for the fact of theft of funds from the municipal budget. The parties denied those charges and claimed that the deal had been made under the market requirements. The President of the Bank Andrey Borodin (and his First Deputy Dmitry Akulinin) was charged with theft afterwards, which actually forced him to sell his share of the Bank and to leave Russia. Bankruptcy procedures were initiated over Premier Estate and TD Ramenskaya.

The Bank of Moscow held an auction for the sale of the claim rights to Premier Estate for 14,6 billion roubles in 2012, but no one wanted to pay that kind of money. The creditors of Premier Estate (Bank of Moscow was the main one) attempted to sell TD Ramenskoe two years later in to course of bankruptcy proceedings: for 6,2 billion roubles in April, and for 5,67 billion in July, but once again no bids. The final auction was to be held in late October, also for 5,67 billion roubles, but the committee of creditors revoked the sale decision.

Alexander Bolomatov, Partner of the Law Firm "YUST", says that such low price is most likely due to TD Ramenskaya’s debts to the creditors: “The file of the bankruptcy suit against the company contains only one claim – by the Bank of Moscow for 13,75 billion roubles (a similar claim is included in the register to Premier Estate)".

The representative of the trustee in bankruptcy of Premier Estate Alexander Aliukaev refused comments to Vedomosti, only stating that it is the creditors who determine the selling price.

A representative of the bank said that all procedures are done by the trustee in bankruptcy within the scope of bankruptcy proceedings, and the Bank of Moscow, as well as other creditors of the company, are not involved in said procedures.

Alexander Bolomatov adds: “Depending on the situation, the creditors may also suggest to the pledgee of the land plot to write it off, if the sale is impossible».