ST.-PETERBURG, February 16 - RAPSI. The commercial court has dropped TGK-1's $10.7 million lawsuit against the Kola Power Distribution Company and endorsed a settlement agreement between the parties, the Supreme Commercial Court reports on its website.

Under the agreement, the power distributor agrees to repay its debt to the generating company by January 1, 2013.

The plaintiff sought payment arrears for contractual power supplies between January 1 and October 31, 2011.

TGK-1 is one of power distributor's creditors. The distributor's debt accrued due to late customer payments.

Established on October 1, 2005, the company is the guaranteed power distributor in the Murmansk Region.

TGK-1 is the key electrical and thermal power generator in the North-West of Russia. It has 55 power plants in four regions.