Crocus International threatens to bankrupt Millionaire Fair over debt issues
The ongoing corporate dispute between Crocus International and the organizers of the Russian version of the Millionaire Fair, more popularly known as ‘vanity fair’ could possibly lead to the bankruptcy of the latter. The bone of contention is the estimated cost of over Rub7mln of services rendered to the Fair organizers and their star visitors in 2008. According to Crocus International, the sum comprises a rent of Rub5.6mln and services charges of Rub1.5mln.
When both parties failed to resolve the issue peacefully earlier this year, Crocus went to the Moscow Arbitration Court to seek redemption of the debt. The court ruled in its favor. But when the Millionaire Fair management refused to honor the court ruling, Crocus filed a bankruptcy case against the company.
However, Millionaire Fair Co. CEO Elena Kudozova has noted her company does not recognize the debt claim, as it resulted ‘from services that were not delivered at all or poorly rendered.’ “In our opinion, Crocus’ actions are connected with our decision to change our venue this year to the Manezh Expo Center,” she noted. “The Crocus suit seeking the bankruptcy of our company is linked with this venue change, as it stands to lose a lot from this move,” she added. “The Millionaire Fair is a status event, and they certainly do not want to lose such a high-profile client.”
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