Russia’s Ninth Arbitration Court of Appeals has ordered Russia’s Taganrog Automobile Plant, or TagAZ, to repay RUB726.9m (US$25.7m) of loan debt to state-controlled VTB Bank.
The court’s order upholds a ruling by the Moscow Arbitration Court issued in November 2010, Prime-Tass reported.
The Ninth Arbitration Court of Appeals also upheld a ruling by the Moscow Arbitration Court to seize TagAZ equipment worth RUB617.2m rubles to pay the debt.
The debt arose as a result of a loan taken out by TagAZ in 2008.
Established in 1997, Rostov Region-based TagAZ has produced Hyundai vehicles under licence from Hyundai Motors since 2001. It started production of cars under its own brand in 2009.