Court installs external administration at Russian Magnesium to end-2014
YEKATERINBURG. July 15 (Interfax) - The Sverdlovsk Region Arbitration Court has installed external administration at OJSC Russian Magnesium for a period of 18 months as part of the company's bankruptcy proceedings, court materials show.
Dmitry Seleznev, a member of the Euro-Siberian Self-regulating Organization of Arbitration Managers, has been appointed as external administrator. The court has asked him to draft an external management plan by August 3 and present it to a meeting of creditors for approval.
The company does not have any first- or second-priority creditors, according to the register of claims, the court materials state. The claims of third-priority creditors totalled 2.261 billion rubles as of June 25, while the book value of the company's assets stood at 3.29 billion rubles as of June 30.
Russian Magnesium filed for bankruptcy on September 5, 2012, due to a shareholder dispute and heavy debt burden. CEO and co-owner Alexei Ginzburg said the company's debt totalled about 2.3 billion rubles.
The Sverdlovsk Region Arbitration Court began monitoring procedures at Russian Magnesium in January 2013. The regional government, which owns a 25% stake in the company, objected to the controlling shareholder's decision to file for bankruptcy.
Russian Magnesium planned to mine magnesium in the Sverdlovsk Region town of Asbest. A decision was made in 2007 to build a plant with capacity of 70,000 tonnes of magnesium and alloys and 90,000 tonnes of precipitated silica per year. The cost of the patented magnesium recovery technology is about 900 million rubles.
