Grandiose plans of Avantgarde-M

The Moscow Court of Arbitration ruled the insolvency request moved by Financial Center – Inter-Bank Currency Exchange CJSC (the Financial Center – ICE) founded and, pursuant to the Ruling, initiated supervision proceedings towards the company. The company used to be a member of Eurasia IIG, the main owner of which Mukhtar Abliazov, a former shareholder of BTA Bank of Kazakhstan, was deemed, and planned to construct an office and business center «1812» of 98 000 sq. m. at the Poklonnaya Hill. After BTA Bank was nationalized in 2009, the works at the site were suspended; according to a source in the Moscow Mayor’s office, the object is approximately at 25% of completion.

A representative of Moskomstroyinvest (responsible for performance of investment contracts) says that the Financial Center – ICE suggested reviewing of the plans and erecting a smaller object, with an area of 68 000 sq. m. in the end of the last year. As a result, the project was remitted for redesign. The incomplete building was pledged to AMT Bank (the Russian repoffice of BTA Bank) until lately. The Court of Arbitration of Moscow ordered its sale in 2013 estimating the initial value at 809.5 million roubles.

The company Avantgarde-M, which is to receive 1,87 billion roubles of the debt, initiated the bankruptcy claim against the Financial Center – ICE. That same company (ASV, is carrying out the dissolution of AMT Bank) won the tender on the claim rights to the Financial Center – ICE for 1,26 billion roubles. The shares of the Financial Center – ICE are the security of that debt.

Alexander Bolomatov, Partner of the Law Firm "YUST", explains: “Pursuant to the law, the pldgee in the event of the company’s bankruptcy may receive up to, and not exceeding, 80% of the value of the sold property. However, as Avantgarde-M is also the initiator of the bankruptcy as well as a creditor, one may suppose that the entire pledged property will pass under its control” – he adds.