16th Oct 2014 11:34
LONDON (Alliance News) - AFI Development PLC said Thursday that a Moscow court has decided to liquidate the former primary investor in its Botanic Garden project and the company has written off its rights to the project, and cannot restore it on its balance sheet until the investor has been legally liquidated.
AFI wrote-off its rights to the project after bankruptcy proceedings were started against Novoe Koltso Moskvy OJSC, and it simultaneously continued its efforts to secure development rights to the project. It managed to get its development rights recognised through negotiations with Moscow city authorities, and as a result Koltso Moskvy will not have any claims on investments made by AFI on the project.
AFI said it cannot estimate the effect of the restoration of the project on its books, and is now in the process of commissioning a valuation report from its independent appraisers.
AFI Development is untraded Thursday. It last traded at USD0.775.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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