Court delays VTB's bankruptcy petition against car manufacturer
MOSCOW, October 20 - RAPSI, Alyona Yegorova. A commercial court has postponed until November 17 its hearing of a petition filed by VTB Bank for the Taganrog Automobile Plant's (TagAZ) bankruptcy, TagAZ's attorney told the Russian Legal Information Agency (RAPSI).
VTB's bankruptcy application is grounded on the Moscow Commercial Court's decision to award it $38.6 million in its lawsuit against TagAz. The plant has already filed a petition for respite and a debt repayment extension, which will be heard after the bankruptcy case is completed. The cassation appeal filed by TagAz will be heard on November 7.
Earlier, TagAz won a court judgment to delay its debt repayment in a $23.4 million dispute. The court delayed the debt repayment until late 2011. The plant will consequently have to repay the debt in installments during 2012.
VTB told RAPSI that TagAz "failed to come up with any rational proposals to repay the debt."
TagAz was founded in February 1997 and launched a joint venture with the South Korean Hyundai in 2001. The plant can simultaneously produce up to six different car models on its primary conveyor. The plant's production capacity is 180,000 vehicles per year.
VTB Bank is the second largest bank in Russia.