MOSCOW, September 6 - RAPSI, Natalia Belova. The Ninth Commercial Court of Appeals has upheld the lower court's decision to award VTB Bank $62.879 million in its lawsuit against the Taganrog Automobile Plant (TagAz).
With its decision, the court held against the appeals filed by loan debtor TagAz and Promstroy Plus, a guarantor in the loan.
The Moscow Commercial Court decided on June 7 to recover a debt from TagAz and Promstroy Plus under a lawsuit filed by VTB. The court has recovered $50.1 million in principal debt and interests and penalties. Additionally, the court fined Promstroy Plus $2 million in penalties.
The court ordered to institute recovery proceedings against plant's secured property.
The court has announced that the property must be sold via public auction.
TagAz was founded in February 1997. It began cooperating with South Koreas Hyundai in 2001. The plant can simultaneously produce up to six different cars on its primary conveyor. The plant's production capacity is 180,000 vehicles per year.