Court declares Igor Savenkov bankrupt

12.01.2010, 09:54

Igor Savenkov, owner of Onistar and several other businesses, was declared personally bankrupt on Friday by Harju County Court.

According to aripaev.ee, Savenkov's bankruptcy was claimed by two companies, Grand Marketing and Della Project.

The court appointed Urmas Tross as bankruptcy trustee and established that the first general meeting of bankruptcy trustees is January 27.

Tross told aripaev.ee that Savenkov's bankruptcy was caused by extensive personal loan guarantees that he had extended to companies in which he was a shareholders including Onistar, Rakvere Piiritustehas and Kiirlaenude ja Kinnisvara AS.

Grand Marketing is seeking bankruptcy of Savenkov because of personal guarantee that he gave to 47 million kroons that Grand Marketing lent to Kiirlaenude ja Kinnisvara AS, an operator of a pawnhouse. When the company owned by Sergei Smetana defauled on the loan repayment, Grand Marketing claimed the money from Savenkov.

In June 2009, Savenkov claimed that he had sufficient personal assets to reach an agreement with creditors. He said that the whole dispute got to court because he was on a holiday and had no time to organize the papers. Savenkov claimed that he had already reached a principle agreement with Grand Marketing.

Distillery Onistar that was founded in 1994 and was the flagship of Savenkov's business empire was declared bankrupt in June 2008. Onistar produced such well-known vodka brands as "Stolichnaya" and "Moskovskaja Osobaja" under license and exported up to 60 pct of its output.

However, Onistar's most famous product was Turi Vodka that was marketed in the US by the Bacardi-Martini Group. Bacardi spent USD 17 million on marketing Turi Vodka in USA and achieved that in some New York bars and restaurants, Turi was selling even better than Stoli or Absolut.

Turi Vodka was launched in autumn 2002 in splashy trend magazines such as Wallpaper. It was a joint project with Bacardi-Martini Group where the vodka is produced in Estonia from Estonian grain and  Bacardi-Martini has been responsible for worldwide marketing. A 0.75 litre bottle of Turi Vodka cost USD 30 in the USA.

The vodka brand's website said: "Turi is the first super-premium vodka truly from Estonia- the last great untapped vodka resource nestled in the heart of the vodka belt- which streches from Russia through Finland. The Turi recipe has been perfected over 500 years in the vodka kitchens of Estonia. Estonia's recent independence now allows Americans to freely enjoy this celebrated vodka."