Mirax saved for now

Russia's Mirax Group has agreed a restructuring plan with Alpha Bank that secures the immediate future of what is one of Russia's largest developers.

Doubt was cast over the future of the Mirax Group last month when CEO Sergei Polonsky said on his personal blog that the Group was halting all construction activity after Alpha Bank froze its assets.

Mr Polonsky's August blog said, "During the past year, we haven't managed to get a single loan for construction, and in the past month we haven't sold a single m² of housing or collected any installment payments for the real estate we've already sold."

Alpha Bank is Mirax Group's largest single creditor and the agreement will see US$ 250 million restructured for up to 18 months.

Following news of the restructuring agreement, Mr Polonsky said, "Colleagues from Alpha Bank have shown great understanding and flexibility in an uneasy situation and as a result they have enabled us to restructure our debts.

"I am personally grateful to Michael Maratovichu for his strong willed decision to adjust Alpha Bank's stance to enable this agreement to be reached."

Mirax Group and Alpha Bank are now discussing further financing options to enable the developer to complete the Federation Tower project, the tallest high rise in Europe.