6 Oct 2017 09:29

VEB begins to prepare KTZ, subsidiaries for bankruptcy

MOSCOW. Oct 6 (Interfax) - Russian development bank VEB has begun to implement a "default strategy" for Concern Tractor Plants (KTZ), almost immediately after a supervisory board meeting at which it was approved.

VEB published a notification on fedresurs.ru Thursday evening about its intention to file for the bankruptcy of Concern Tractor Plants Corporate Governance Company LLC, as well as a number of other KTZ entities: Kurganmashzavod, Agromashholding, Promtractor, Cheboksary Aggregate Plant, VgTZ and others.

Several hours before this, VEB's supervisory board, chaired by Prime Minister Dmitry Medvedev, decided to implement a "default strategy" regarding KTZ.

"For KTZ we have made a decision on a default strategy. I think this is an important decision regarding this large enterprise. Our objective now is to ensure, nonetheless, that the plants do not shut down, that they work and continue their operations," VEB head Sergei Gorkov said after the board meeting.