MKS considers getting out of electronics business

MKS (KVIN) President Alexander Golovchenko said yesterday that the retailer might exit the electronics business and focus on home appliances, Kommersant reported this morning. Golovchenko also noted that MKS has repaid about USD 35 mln in principal owed to banks by mortgaging real estate. MKS announced at the beginning of the month that it cleared its debt to VTB Bank by transferring control of two outlets in the Moscow and Cosmos retail centers in Kharkiv, Interfax reported. Both outlets were named as collateral in a loan agreement. MKS began bankruptcy proceedings in June in order to prevent a seizure of assets by VTB Bank as a consequence of a dispute over the repayment of a loan in December 2008. Andriy Gostik: Apparently, MKS’ chances to get over its financial troubles have risen significantly with the debt settlement. Yet, we caution that the company’s business remains very fragile and expect that the retailer will struggle throughout 2010.