Kharkiv Court begins to liquidate MKS

The Economic Court of Kharkiv has begun liquidation procedures on electronics retailer MKS, the company announced in a press release on Friday. Bankruptcy proceedings were launched in May 2009 at the company’s request in order to protect its assets from seizure by VTB Bank over a debt dispute. In November 2009, MKS said that it cleared its debt to VTB Bank by transferring control of two outlets in Kharkiv, which were named as collateral in a loan agreement. Last month, daily Kommersant reported that MKS gave its last five retail outlets out for management to a competitor.