"Mostovik" goes bankrupt

A developer of the Olympics, a corporate client of the largest Russian banks went bankrupt.

Mostovik SIV of Omsk, one of the Olympic contractors, requested a court of arbitration to declare it bankrupt. The company is suffering losses on several major projects, including "Olimpstroy", at once. The company was unable to service the loan agreements with Gazprombank, Alfa Bank, Sberbank and other creditors in February, who blocked accounts and seized the company's assets.

Alexander Bolomatov, Partner of the Law firm "YUST", Advocate:

- In this case, it would be more correct to discuss the General Director's duty to file the request to rule the company bankrupt with a court and not protection from  hostile bankruptcy. Such duty is fixed by the Law of the Russian Federation "On insolvency (bankruptcy)".

Besides, the fact of the first filing of the bankruptcy request (which the General Director or the creditor bearing an enacted court judgment may do) grands additional rights to the applicant - in this case, Mostovik SIV - for example, the right to choose the trustee, which is very important for the defence of Mostovik SIV.