Mega-builder who scoffed at re­ces­sion goes un­der

Weekend Argus (Saturday Edition) - - ISSUES -

A RUS­SIAN construction mag­nate who made head­lines for say­ing that any­one who failed to be­come a bil­lion­aire in Rus­sia could “go to hell” has ad­mit­ted his once ti­tanic com­pany is go­ing un­der.

Mi­rax Group CEO Sergei Polon­sky was worth $1.2 bil­lion in 2008 ac­cord­ing to Forbes mag­a­zine. A court last week froze Mi­rax’s as­sets for its fail­ure to re­pay a $242 mil­lion loan.

Polon­sky used to urge re­porters not to blow the eco­nomic down­turn out of pro­por­tion. Now, his tune has changed.

“Dur­ing the past year, we haven’t man­aged to se­cure a sin­gle loan for construction, and in the past month we haven’t sold a sin­gle square me­tre of hous­ing or col­lected any in­stal­ment pay­ments for the real es­tate we’ve al­ready sold,” he writes in his blog.

As a pri­vate com­pany Mi­rax is not obliged to de­tail its fi­nances, but the com­pany’s debt is es­ti­mated at $600700m– Reuters

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