MOSCOW, February 15 - RAPSI. Russian state-controlled bank VTB has filed a $22 million lawsuit against air carrier Armavia and jet fuel supplier Mika Limited, owned by Armenian businessman Mikhail Bagdasarov, the Izvestia newspaper writes, citing a source close to VTB.
The bank is seeking the return of funds issued to refinance the loans Armavia took out to buy a Sukhoi Superjet-100 (SSJ-100).
VTB filed a $10 million suit against Armavia with the Armenian Commercial Court, and a $12 million suit against Mika Limited with the Royal Court of Jersey, where the company was incorporated.
Izvestia received confirmation that the companies are facing litigation from Bagdasarov.
The newspaper's source said that VTB's Armenian subsidiary lent over $7 million to Armavia in 2010-2011 to refinance the loan which the airline took from local lender Ardshininvestbank to buy a Sukhoi Superjet-100 (SSJ-100).
Armavia bought its first SSJ in spring 2011 with the funds it received from Ardshininvestbank and VTB, but last year it renounced the deal and sent the plane back to the producer.
In 2010, VTB's branch in Yerevan, capital of Armenia, loaned $8 million to Mika Limited, with Armavia as the guarantor, the VTB source said. Both companies defaulted on their loans repayment in 2012, and VTB took over the right of claim from its Armenian subsidiary.
VTB Bank is Russia's second largest bank, in which the government holds a 75.5-percent stake.
Armavia said on its website that its fleet consists of two Airbus A320, three Bombardier CRJ-200 and three Boeing 737-55S planes.