ROSTOV-ON-DON, April 24 - RAPSI. The Rostov Region Commercial Court has postponed until May 21 the consideration of the Taganrog Automobile Plant's (TagAZ) own bankruptcy application.

TagAZ submitted to the court a bankruptcy statement on April 6. The court approved the hearing for consideration and set the hearing for April 24.

TagAZ's debt burden increased to 20 billion rubles ($677.86 million) after production dropped three times in 2009. In 2010, the plant managed to agree with most of its creditors on debt restructuring except VTB. TagAZ owed the bank 5.8 billion rubles ($196.5 million).

In 2010, VTB filed several lawsuits against TagAZ for 726 million rubles ($24.6 million), $38.6 million, $70 million, $60 million and 774 million rubles ($26.2 million). The court levied execution on the plant's equipment pledged as security for loans.

In July 2011, TagAZ secured the suspension of 726 million rubles ($24.6 million) in debt recovery until late December 2011. The plant was also allowed to repay the debt in installments by December 2012.

In September 2011, VTB filed an application with a commercial court to declare TagAZ bankrupt.

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.