Validity of agreement between Promstroybank and Guta Bank confirmed

The federal arbitration court of the Moscow region refused to satisfy anappeal of the Experimental Plant of Communal Equipment and confirmed theprevious decision on the validity of an agreement on a banking deposittotaling 500m rubles ($15.87m) between Promstroybank and Guta Bank. Theplant, who is a creditor of Promstroybank, appealed against the previousdecision of the Moscow arbitration court adopted on June 28, 2002.As it was reported earlier, these funds were allocated for repaying offdebts to Promstroybank's creditors. The payments were made through GutaBank. According to a representative of the plant, the agreement was madewith violations of the law on bankruptcy and there were some taxviolations..

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&to=http://www.guta.ru' target=_blank>GUTA Bank