Support The Moscow Times!

Polonsky Takes All of Potok

Russian property tycoon Sergei Polonsky Wikimedia Commons

Sergei Polonsky has bought out minority shareholders and taken full ownership of real estate group Potok, known as Mirax Group before a name change in March 2011.

"A new management board will be established in the near future and strategic development aims defined. All company divisions are working as normal," the company said in a statement, Interfax reported Friday.

Potok is building a number of key facilities in Moscow, including Federation Tower in the Moskva-City business center.

The company encountered debt servicing problems at the end of 2008 and had to take steps to restructure its debt. Potok developed a plan to restructure MG Group debts with a working group of creditors including Uralsib, Renaissance Capital, Troika Dialog and Nomos Bank. The deal was secured by company construction projects as well as Polonsky's personal guarantee.

In January 2012, Polonsky said his company had debts of $573 million. Financial director Alexander Lagutin specified that around $130 million of this was a loan from Sberbank for the construction of Federation Tower.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

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.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more