23 Apr 2010 18:28

Avtovaz will receive 28 bln rubles in state support before April-end - Chemezov

TOGLIATTI. April 23 (Interfax) - Russian car maker Avtovaz will receive the next tranche of state support amounting to 28 billion rubles before the end of April, the head of the Rostekhnologii state corporation, Sergei Chemezov, told journalists following a meeting with First Deputy Prime Minister Igor Shuvalov.

"We have already transferred 12 billion rubles to Avtovaz and it used the money to repay creditors. The 28 billion rubles will be transferred before the end of the month, following the decision of the state corporation's supervisory board, which will take place on April 29. I think we will be able to transfer this money on April 30," he said.

The funds are being provided to Avtovaz in the form of loans. But later, after a decision by the Avtovaz board and the assembled shareholders, the money will be transferred into charter capital and converted into shares.

"The decision to increase Avtovaz's charter capital will be made by the board of directors and the annual shareholders' meeting. All shareholders that wish to maintain their relative stakes will have to contribute additional funds, otherwise their stakes will be diluted," he said.