The recent meeting of creditors of HydroSpetsStroy Ltd. (the general contractor of Noviy Grad, the local builder) resulted in declaring the company insolvent after all the papers produced by the developer had been analyzed, reports Olga Rushitskaya, the company’s trustee in bankruptcy.

‘This is why I suggest setting up a committee of bankruptcy,’ Ms Rushitskaya said. The issue of setting up such a committee appeared on the agenda of the meeting, yet the decision was not voted for. The trustee in bankruptcy of HydroSpetsStroy Ltd. finally decided to place all the papers concerning the company with the Court of Arbitration after January 20, 2007. The future of the enterprise will therefore be determined by the court.

HydroSpetsStroy Ltd. is currently in the middle of bankruptcy proceedings; according to the orders of a number of courts of arbitration, it owes its creditors over 54m RUR. It has been monitored since July 2006, yet, according to Olga Rushitskaya, the management of the company was uncooperative and unwilling to assist in the workout procedures.