Visit-Montenegro.com: Polonski Has Announced Fiasco; Budva Has Not Admitted It

Budva/Podgorica – The company „Mirax Balkan“ from Budva engaged in the „Astra Montenegro“ project on construction of luxury flats has denied information published by the AP that Sergei Polonsky, a majority shareholder in the „Mirax Group“ has declared bankruptcy.
- „Mirax does have financial problems like many other large world construction companies; however, it has not gone bankrupt. We continued to work according to the plan made within last five months“– it was announced from Budva-based daughter company of „Mirax group“
The AP states that Sergei Polonsky, a Russian construction tycoon, who has made himself famous by saying that in Russia anyone who does not succeed to become a millionaire is a loser, has announced yesterday that his once gigantic company went bankrupt.

As the AP reports, the complete property of Mirax was frozen by the court last week due to
unpaid debt of $242 million, which stopped completion of the attractive projects of „Mirax Group“, like the „Tower of Federation“ project in Moscow, which was planned to be completed by the next year.
The head of “Mirax Group”, whose wealth on Forbes' List was valued at $1.2 billion, says his company is going to stop all works.
In 2008 Polonsky said „those who do not have a billion should go to hell“.
Now on his website he says that things have changed.

- During last year we couldn't provide terrain for constructiont; during last few months neither did we sold nor we received money for sold real estates - Polonsky wrote on his web-site, as the AP reports.
- “Mirax” has to deal with numerous difficulties brought by economic crisis. However, it may not survive. If we are destined to disappear we will do it with our heads high – wrote Polonsky
Analysts estimate “Mirax Group” debts at $600 – 700 million.
At the moment “Mirax Group“is constructing 40 villas for sale and rent on the cape of Zavala,
out of which 60% has been sold, according to the previous announcements
This company has announced the construction of 27-floor hotel on this exclusive location.

“Zavala Invest“company was a partner with “Mirax“in the “Astra Montenegro“project on construction of luxury flats. Svetozar Marovic, the present Deputy Prime Minister was a co-owner of „Zavala Invest“. While implementing this and other projects in Montenegro, “Mirax“ has been violating valid law regulations of Montenegro, whether incautiously or intentionally. „Mirax“has always been the center of attention in Montenegro since the richest Russian construction corporation announced construction of the hotel complex which turned soon only into a settlement of luxury flats for the market sale.
Although the town plan project of the cape of Zavala were not finished, „Mirax“ started construction of 40 villas.The building inspection interfered in the case only after the pressure of the media and NGOs.

„Mirax“accepted to stop construction works, while Marovic accepted EUR 1 million as a condition to leave the whole project.
The town plan project of „Zavala Tourism Complex“foresees construction on six hectares. Constructors obliged themselves to retain four hectares of greenery. The project consists of two zones – «A» zone of 32.000m2 which foresees construction of villas with basement, ground floor, first floor and attic. Now it is more than obvious that limits have been exceeded because each villa has at least two stores; some of them have even five stores. In the «B» zone of 61.500m2, the construction of two hotels is planned. One hotel would have basement, ground floor and other six floors, the other one, located at the smaller area, would be of 20.400 m2 gross surface area.
The lot planned for construction of luxurious 27-storey hotel named “Jedro“, the first 7-star hotel in the Mediterranean, is currently under court investigation. The municipality which has registered in its name the ownership over this lot has been sued by 15 families from Rafailovic clan, since Rafailovic clan posesses written evidence which confirms this land belonged to their ancestors.
The court procedure being carried out, Mirax often avoids to publicly mention completion of the second stage of „Astra Montenegro“project.
At the beginning of the last year the municipality of Budva established a special enterprise „Budva Holding“entrusted with management over many attractive lots along Budva Riviera, including those cape of Zavala as well. In July last year this company invited the tender for establishing joint-venture company which would manage future exclusive tourism complex in the cape of Zavala; “Mirax Group“ and a company from the USA submitted bids. However, since then no agreement has been signed with any company nor the municipality has revealed the reason for such a long delay.

By V.L.-G.K.