VGOK to go bust

30 July 2015 (13:00)

UrBC, Yekaterinburg, July29, 2015. Sverdlovsk Region Arbitration Court is to process an insolvency application involving Nizhniy Tagil-based Vysokogorsky Ore Mining & Processing Enterprise/VGOK, the court reports.

The application was submitted by OOO Teploservis on July 17, 2015. It is not yet clear how big the plaintiff’s claims are.

VGOK used to be a part of EVRAZ Holding until September 2013 and was then sold to Ural Group, owned by Vladislav Shatsillo. The enterprise now runs three mines: Magnetitovaya, Yestyuninskaya, and Yuzhnay, as well as an open-pit mine, a processing facility, a sintering plant, and a railway company.

Despite the management’s attempts to solve the company’s problems through raising prices of certain products and asking Sverdlovsk Region Government for support, the business finds itself unable to pay its suppliers. Over twenty creditors went to court in the first three months of 2015 alone, claiming a total of 54.5m RUR.

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