18 Jan 2011 18:34

IzhAuto creditors vote for receivership

MOSCOW. Jan 18 (Interfax) - Creditors of IzhAuto Tuesday voted in favor of putting the car plant in receivership and selling its assets off, the company told Interfax.

The court could rule on the matter next week.

Sberbank , the company's biggest creditor, aims to sell United Automobile Group, its subsidiary which currently runs IzhAuto, to Avtovaz in March, paving the way for Avtovaz and Renault-Nissan to modernize the plant.

IzhAuto could produce 126,000 cars in 2011, rising to 300,000 by 2014 - half of them Renault and Nissan models.

Avtovaz, which will transfer production of the Lada Samara to IzhAuto, could invest 7 billion rubles in the plant in three or four years, funded by a Sberbank loan to that amount repayable in up to seven years.