Most-Bank, formerly owned by exiled Russian tycoon Vladimir Gusinsky, is preparing for bankruptcy, the new owner says.

"It is necessary to prepare Most-Bank for bankruptcy," said an unnamed representative of Vneshtorgbank, which acquired Most-Bank last October. The announcement came at a recent meeting of Most-Bank's temporary administration.

The Russian press reported that the decision was prompted by a Vneshekonombank move to collect $70 million from Most-Bank, which had previously pledged the sum as security for a failed deal between the Russian Finance Ministry, Vneshekonombank and a member company of Gusinsky's Media-MOST holding.

Previously, Vneshtorgbank planned to restructure Most-Bank's debts, which stood at about $296 million at the beginning of the year, and to help the ailing company avoid bankruptcy.

But the Kommersant newspaper reported that a decision was made to close all of the Most-Bank branches and sell off its plastic card operation. Last month, Vneshtorgbank said it was taking responsibility for all plastic cards issued by Most-Bank.

Both Most-Bank and Vneshtorgbank declined to comment on the situation. An employee of Most-Bank, who wished to remain anonymous, said the company had not yet been shut down. "The bank is operating," she said. "Everything is OK at the bank."

Most-Bank was formed by Gusinsky in 1989, and was among Russia's top 20 banks for several consecutive years.