‘Maxi Group’s financial policy has not been perfect in the last few years; I see their careless attitude to risk management as their greatest faux pas; besides, the company’s debts grew so large that it turned out to be very difficult to pay them off,’ Director of Accord Invest’s Ural branch Konstantin Selyanin said to UrBC.

Maxi Group now owes some 34 billion RUR to thirty banks altogether.

‘The company could do the following: firstly, make some arrangements with its creditors and go for refinancing, yet this alone wouldn’t save them. Secondly, the business could be sold, but it would have to be sold quickly and therefore cheaply. So Maxi Group went for the third option, that is, the company decided to sell part of its assets. And even though these are not the most significant assets, the measure still weakens Maxi Group’s production. It does do the company some damage, but it looks like a much more realistic way out than asking Russian President Vladimir Putin for help. In fact, the letter the company’s CEO sent to Mr. Putin has probably made the investors think Maxi Group’s management is unable to act adequately under trying circumstances and is unpredictable in terms of decision-making,’ Mr. Selyanin says.