RUSSIA: IzhAvto set to restart production
Bankrupt Russian carmaker IzhAvto could resume production of AvtoVAZ’s core Lada models by the end of September.
Prime Tass said the government of Udmurtia region has held a number of meetings with interested parties and reached an agreement over the need to include IzhAvto onto the list of companies that are considered to be integral for the economy.
IzhAvto’s bid for inclusion onto the list has already been sent to the relevant government commission.
In addition, IzhAvto is currently at the final stage of concluding an agreement to restart production of Hyundai and Kia cars.
IzhAvto stopped production in May last year due to financial difficulties and was declared bankrupt in September.
Last month IzhAvto’s creditors approved a plan of external management at the company, under which IzhAvto is expected to repay its debts and reach non-loss making operations within 18 months. Creditors’ claims to the company total RUR13.5bn (US$43m). State-controlled Sberbank is IzhAvto’s largest creditor.