Sverdlovsk Region Court of Arbitration stated that HydroSpetsStroy Ltd. (general contractor of Noviy Grad, the developer) should go through bankruptcy proceedings with Olga Rushitskaya as the trustee in bankruptcy. Ms Rushitskaya now has to hold a meeting of the company’s creditors and decide upon a self-regulating organization whose members would then appoint the trustee in bankruptcy themselves.

‘My predictions have come true: I knew there was no other way for HydroSpetsStroy Ltd. but to go through bankruptcy proceedings, as it appears impossible to restore the company’s solvency,’ Ms Rushitskaya said to UrBC.

The company owes its creditors over 55 million RUR.