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. Last Updated: 07/27/2016

Mirax Will Stop Funding Construction Projects

Mirax Group, facing the threat of court-ordered asset seizure over its debts to Alfa Bank, will stop financing its construction projects, CEO Sergei Polonsky wrote on his blog Thursday.

“We have not managed to get a single bank loan to finance construction in the last year, nor have we sold a single square meter in the past month, nor been paid a single installment on previously acquired real estate,” he wrote.

Its flagship project, a Moscow office and residential complex, was threatened with seizure in a court order won by Alfa Bank.

Alfa, which has aggressively pursued overdue debts through the courts, filed suit to retrieve $241 million in Mirax debt it bought from Credit Suisse after a preliminary restructuring deal with the European lender failed.

Polonsky said that if Alfa took over Mirax, the bank would have to complete its projects.

“I am sure that even if we cannot agree on restructuring with Alfa Group and, as a result, Mirax Group gets a new owner, Alfa Group will finance and complete all the company’s sites, and everyone who invested in them will receive their square meters on time.”

Documents showed that the Moscow Arbitration Court ruled against a Mirax unit that owns Federation Tower.