3 Nov 2017 14:13

Rostec launches bankruptcy at Concern Tractor Plants; debt tops 85 bln rubles

MOSCOW. Nov 3 (Interfax) - Finance recovery efforts have been launched at enterprises in the Concern Tractor Plants (KTZ) group, where debt now exceeds 85 billion rubles, the Rostec state corporation reported on Friday.

"Accumulated financial liabilities of the enterprises in the KTZ group top 85 billion rubles. Beginning in late October 2017, Vnesheconombank (VEB) has conducted bankruptcy procedures, implementing a 'default strategy' approved by VEB's supervisory board in relation to a host of KTZ assets as the sole means of overcoming crisis and beginning to revive production," Rostec said in a press release.

A working group including representatives of the Industry and Trade and Labor ministries, Rostec, VEB and regional bodies of executive authority has already been created to oversee the financial recovery effort.

"The working group has prepared a road map for KTZ's recovery. Representatives of the working group have already visited one of KTZ's manufacturing facilities, Vladimir Motor and Tractor Plant," Rostec said.

"Key goals for Rostec in the near-term outlook are fulfilling state orders on time and in full, and maintaining social stability. As the judicial procedures stipulated by law are carried out, the enterprises will carry on with economic and production activities," Sergei Abramov, industrial director of Rostec's Weapons cluster, is quoted in the press release as saying.