VTB bankruptcy lawsuit against car manufacturer to be heard in court
MOSCOW, September 23 - RAPSI, Alyona Yegorova. A commercial court will hear on October 20 a bankruptcy appeal filed by VTB Bank, Russian major financial institution, against Taganrog Automobile Plant, the Russian Legal Information Agency (RAPSI) reported on Friday.
VTB Bank is Russia's second-largest bank in terms of assets. It was established in October 1990. The state owns an 85.5-percent stake in the bank.
Taganrog Automobile Plant was incorporated in February 1997 and teamed up with South Korea's Hyundai in 2001. The plant's total output is 180,000 cars per year.
RAPSI was told by the bank that Taganrog Automobile Plant, as the borrower, did not formulate constructive proposals to VTB Bank to pay back its debt.
The absence of proposals from the plant's managers to solve the problem made VTB Bank submit a bankruptcy statement, VTB Bank said.
Taganrog Automobile Plant's debt to VTB Bank is several billion rubles and was confirmed by the commercial courts decision.