Creditors of bankrupt Russian carmaker IzhAvto have approved a restructuring plan aimed at repaying the company’s debts and a return to non-loss making operations within 18 months.

business daily Vedomosti reported that the company will be run by an external administrator. Debts currently total RUR13.5bn (US$46m).

The administrators told the newspaper that IzhAvto could sell non-core assets estimated at RUR8.5bn (US$29m) and also hopes to recover around RUR2.9bn (US$10m) of receivables. The company may also try to extend its contract assembly operations for other carmakers.

IzhAvto now plans to resume assembly of the Lada-2104 and several Kia models by the end of June, although no agreements with AvtoVAZ or the South Korean carmaker have been signed yet. It hopes to assemble over 90,000 vehicles at the company’s Kaliningrad plant in 18 months, under the plan.

IzhAvto stopped production in May 2009 due to financial problems and filed for bankruptcy in August 2009. In September last year, the carmaker was declared bankrupt.