MOSCOW, November 14 - RAPSI. RAPSI. The Ninth Commercial Court of Appeals has upheld the first-instance court's ruling to grant Gazprom's recovery of €21.21 million and over $1.8 million against the Taganrog Automobile Factory (TagAZ), the court told the Russian Legal Information Agency (RAPSI/rapsinews.com) on Wednesday.

In so holding, the court dismissed TagAZ's appeal of an earlier ruling by Moscow Commercial Court.

The debt resulted from an agreement on opening letters of credits, which the parties entered into on May 19, 2011. Vehicles were pledged under the contract.

The court has also satisfied the bank's claims to levy execution on the pledged property.

The court hearing under TagAZ's application was held with the use of videoconferencing.

On June 19, the Moscow Commercial Court recovered €49.5 million and $702,000 in debt in another lawsuit filed by Gazprombank against TagAZ.

The defendant's debt was formed under two credit contracts. Earlier, the court refused to satisfy Gazprombank's request to impose an arrest on about 2,000 cars belonging to the plant.

TagAZ filed for bankruptcy in April. Its debts reached 20 billion rubles ($632.72 million) after production dropped three times in 2009. In 2010, the plant managed to reach an agreement with most of its creditors on debt restructuring, with the exception of VTB. TagAZ owed the bank 5.8 billion rubles ($183.49 million). In 2010, VTB filed several lawsuits against the plant.

TagAZ was founded in February 1997 and launched a joint venture with the South Korean Hyundai in 2001. The plant could simultaneously produce up to six different car models on its primary conveyor. The plant's production capacity was 180,000 vehicles per year.