One of Russia's oldest pawnshop chains is going bankrupt in Moscow

The “Mosgorbombard” network, which has been in operation for over 100 years, has found itself in a difficult financial situation due to a series of defaults. For the second time in a week, the parent company of the MGKL Group failed to meet its obligations to investors, missing a November 2 payment of 20 million rubles on its bonds (about $245,000). A few days earlier, the company also failed to pay coupon income of 24.7 million rubles (about $302,000).

The National Rating Agency downgraded MGKL’s credit rating to C|ru|, indicating a high probability of full-scale bankruptcy. The group’s total public debt reached 6.5 billion rubles (about $79.6 million), and its securities have plummeted: bond prices have fallen to 10–27% of face value, while shares have lost 52% of their value. 

The Federal Tax Service has already frozen the accounts of eight MGKL subsidiaries due to their debt, with private investors—individuals—being the main victims of the financial collapse.

Source: RBC.

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