Car manufacturer challenges $27 mln award for VTB bank
MOSCOW, September 23 - RAPSI, Alyona Yegorova. An appeals court will hear on October 12 the Taganrog Auto Factory appeal against a $27 million award in favor of VTB bank in a loan agreement dispute, the court told the Russian Legal Information Agency (RAPSI).
The Moscow Commercial Court partially satisfied the bank's claim, significantly slashing the penalty on June 30. Initially, the bank sought 890.630 million rubles ($31.8 million).
The court also levied execution on the pledged factory equipment.
In December 2008, VTB issued a 610 million ruble ($21.8 million) loan to Taganrog, which was to be repaid by Jun. 10, 2009. After Taganrog defaulted on the loan, VTB initiated the lawsuit.
The Taganrog Auto Factory was incorporated in February 1997 and teamed up with Hyundai in 2001.