MOSCOW, November 2 - RAPSI, Alyona Yegorova. The court will hear on November 17 cassation appeals filed by the Taganrog Automobile Plant's (TagAZ) and Promstroy PLYUS against the court decision to award VTB Bank $62.88 million, the court told the Russian Legal Information Agency (RAPSI).
The Moscow Commercial Court awarded VTB $62.879 million on June 7 in its lawsuit against TagAZ and Promstroy PLYUS. VTB sued TagAZ after it failed to repay a loan granted in 2008.
Promstroy PLYUS was the guarantor of the loan. The defendants were ordered to repay $50.1 million in principal debt, interest and penalties. The court also ordered Promstroy PLYUS to pay an additional $2 million in penalties. An appeals court upheld the judgment in September.
The court instituted foreclosure proceedings against the property pledged by TagAZ as security for the loan.
This is not the only VTB claim filed against TagAZ.
TagAz was founded in February 1997, and launched a joint venture with the South Korean Hyundai in 2001.