IzhAvto’s financial crisis appears to be deepening, according to Russian media reports.
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Itar-Tass reports that the firm defaulted on a buyback of 1.238 billion roubles worth of bonds because of a lack of funds.
The report added that IzhAvto is verging on bankruptcy and may halt production.
Russia’s SOK Group, which owned 98% in IzhAvto, sold a 74.8% stake in IzhAvto to senior managers of the carmaker, business daily Kommersant reported Wednesday, citing a source with a creditor bank of IzhAvto.
Exchange rate problems have compounded difficulties for IzhAvto arising from a collapse in the Russian car market since late last year.
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