Appellate court approves deferral of $25.5 mln repayment to VTB bank
MOSCOW, September 13 - RAPSI, Alyona Yegorova. The court of appeals affirmed on September 12 a deferral granted to Taganrog Auto Plant of its court-ordered payment of $25.5 million to VTB Bank, the plant's counsel told the Russian Legal Information Agency (RAPSI).
VTB sued the auto manufacturer over a November 7, 2008 loan agreement. According to a VTB representative, the loan was issued at 17-percent annual interest and set to mature in May 2009.
The Moscow Commercial Court awarded VTB 726.09 million rubles in its lawsuit against the plant on November 9. The court foreclosed on equipment pledged by the plant as security for the loan, which was appraised at 617.2 million rubles ($22 million).
In July, the plant was granted a deferral by the court in its payment of the award until December, which VTB appealed.
The Taganrog Auto Plant was established in February 1997. It began to cooperate with South Korea's Hyundai in 2001.