Alfa Faberge, a construction company, has filed several lawsuits against Plaza Lotus Group, from which it acquired the rights to the project to build a hotel on Primorsky Prospekt in St Petersburg last year. In particular, the developer demanded that the agreement concluded in 2022 with Plaza Lotus Finance (associated with Plaza Lotus Group) on the sale and purchase of promissory notes be declared invalid, as well as to cancel the real estate pledge (mortgage) agreement.
According to Sergei Bakeshin, Counsel, Head of Dispute Resolution & Insolvency practice of Maxima Legal, the decision of Alfa Faberge to sue Plaza Lotus Group could have been influenced by the risk of loss of rights to the land plot on Primorsky Prospekt. At the end of December, St Petersburg Goverment's transfer of the plot was ruled invalid. This was achieved by Sinop Hotel, which claims to receive this land from the city for a consumer service facility. This decision is now being challenged by the St Petersburg Investment Committee in a higher court.
"In the current situation, Alfa Faberge may seek to avoid fulfilling its financial obligations to Plaza Lotus Group," the expert explained to Novy Prospect online edition.
