OREANDA-NEWS. August 06, 2009. Russia’s largest real estate development company, PIK Group, has filed a counter-suit against AFK Sistema and its subsidiary Moscow Bank for Reconstruction and Development (MBRD), demanding that the transfer by MBRD of its right to claim debts from PIK to AFK Sistema be challenged and invalidated, reported the press-centre of FINAM.

The relevant motion was posted on the Moscow Arbitration Court’s website (http://www.msk.arbitr.ru). “Through this lawsuit, we intend to litigate the MBRD’s transfer of its right to claim debts from PIK Group to AFK Sistema. We borrowed money from MBRD, and we owe money to MBRD, and we are currently in negotiations to reschedule the debt with MBRD again”, PIK Group press-secretary, Natalya Konovalova said. A Sistema spokesperson said that his company had not received any lawsuits, and declined to comment on the issue.

PIK Group filed a lawsuit after AFK Sistema itself applied to the court in early July 2009 and filed a motion in court, demanding collection of RUB 949.1 mn from PIK Group as repayment for outstanding debt.

The case concerned repayment of a loan amounting to USD 27.7 mn, or RUB 864 mn which PIK Group raised from MBRD in March 2009 under pledge to pay back the debt in early April. After the developer fell into arrears and failed to repay either the principal or the interest, MBRD transferred the right to reclaim the loan to its parent company, AFK Sistema, Sistema’s press secretary, Julia Belous said.