MKS transfers assets to new legal entity

MKS (KVIN), within the next month, plans to transfer its assets, aside from two retail centers, to a new legal structure, daily Kommersant reported today, citing MKS President Alexander Golovchenko, in order to protect them from claims by VTB Bank. According to Golovchenko, the new company will continue to work with present partners and receive transferred lease rights to its property. The name of the new legal entity was not disclosed. Kommersant said that MKS had over 60 electronics stores in 28 Ukrainian cities. In late May the Kharkiv Economic Court initiated bankruptcy proceedings against MKS, at its request – in order to prevent the seizure of its assets by VTB Bank as a consequence of a dispute that erupted over the repayment of a loan in December 2008.