Miel-ZS, an affiliate of property developer Miel, has been declared bankrupt, Rapsi news agency reported.
The statement comes as the embattled real estate company is struggling to remain solvent after failing to meet debt payments for the Barvikha Village project in? the upscale Rublyovka area southwest of? Moscow.
Miel said the affiliate's bankruptcy would not affect its operations in any way. The developer added that it was still in talks with Rosbank on a settlement. The bank, to which Miel-ZS owes 705 million rubles ($22 million), did not respond to a request for comment.
Earlier in July, Miel said it had reached a settlement with its creditors, but Rosbank declined to comment on whether that was true.
Alexei Petukhov, receiver of Miel-ZS, said earlier that the affiliate's solvency could not be restored. He said the company had property worth 5.9 million rubles, while RIA-Novosti reported that its receivables amounted to 2 million rubles.
Miel-ZS guaranteed a $20 million loan provided by Rosbank in 2007 for the Barvikha Village project.
Miel intended to build 100 cottages with an average cost of $1 million per house, but only a third of the houses have been built. In December 2011, Rosbank filed a? bankruptcy lawsuit against Miel affiliate Golden Mile, which was another guarantor for the $20 million loan but failed to repay it.
In? May, law enforcement authorities started a? fraud investigation against top Miel executives after customers complained that they had paid for? houses that had not been built.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.