Korston Group’s debt becomes a sale & purchase object between Alfa-Bank and MDM

According to sources familiar with the ongoing negotiations, Alfa-Bank is currently considering the possibility of conceding its rights to Korston Group’s unsettled debt to MDM Bank. The crux of the issue is that the group’s Korston Hotel and Mall Moscow was used to collateralize the $36.7bln loan, which was due for repayment this spring. Zaali Tsanava, Alfa-Bank’s defaulted corporate debts recovery director, said the deal’s value will cover the loan and interests on it. Besides, MDM intends to lower the interest rate for Korston, but also introduce a clause in the contract on out-of-court expropriation of the hotel at the very first payment default.