AMUR to Pay off Debts by 2024

20 February 2012 (09:24)

Chairman of Sverdlovsk Region Government Anatoly Gredin held a meeting at AMUR car factory’s production site in order to discuss the ways of getting the company out of financial trouble.

Sverdlovsk Region Arbitration Court looked into AMUR’s application for an extension of bankruptcy proceedings for six months and ruled that the company should indeed undergo these proceedings. The court, however, did not take into account the application accepted by the voting majority of the plant’s creditors. The bankruptcy proceedings will be in progress for six months and will be over on July 20, 2012. A number of the car factory’s creditors now appealed to court, asking to cancel the ruling that declares AMUR bankrupt and gives it six months of bankruptcy proceedings.

The plant’s management reports the Chinese company Lifan agreed to become AMUR’s strategic partner. Under the two parties’ latest agreements (reached in January 2012), a separate legal entity is to be set up for the purposes of a new project. Investments will be made in the form of money and machinery, their total volume reaching about $60-$70. According to the car factory’s experts’ estimates, the new project will allow the company to pay off all of its debts to creditors within twelve years.

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