Creditors of Russian tyre producer Amtel-Vredestein have demanded that the company sells its Voronezh-based tyre producer Amtel-Chernozemye according to business daily Vedomosti.
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The newspaper cited as source the Voronezh Region’s Governor Alexei Gordeyev and a representative of Amtel-Vredestein.
The sale should help finance debt restructuring efforts of the debt-ridden tyre producer, the report said.
Amtel-Vredestein NV said late last year that it would not finance its Russian unit Amtel-Vredestein and offered to sell its assets, according to earlier reports.
The debt of Russia’s Amtel-Vredestein totals US$0.5bn, the daily reported.
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By GlobalDataAmtel-Chernozemye, launched in 2007, has an annual production capacity of 5.5m tyres.
Russian tyre producer Nizhnekamskshina has said that it produced 1.505m tyres in the first quarter of this year, a drop of 48.5% on the same period of last year.
Russia’s vehicle market has slumped this year as the economic crisis has intensified and some forecasts suggests that it could drop by more than 50% this year.
