VTB wins $24.6 lawsuit against a major motor plant
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- Court upholds VTB bank's $63 mln claim against TagAz
MOSCOW, October 13 - RAPSI, Dmitry Shchitov. An appellate court has upheld the lower court's decision to award VTB Bank, the second largest bank in Russia, $24.6 million in its lawsuit against the Taganrog Automobile Plant (TagAZ), the court told the Russian Legal Information Agency (RAPSI).
VTB granted a $19.4 million loan to TagAZ in December 2008. The loan was to mature in June 2009, however the car manufacturer defaulted on its payments. The bank filed a lawsuit seeking to recover the principal debt, interest and penalty.
The Moscow Commercial Court partially satisfied the VTB's lawsuit on June 30. The court cut the bank's initial $28.3 million claim by reducing the penal sum.
The court also levied execution of the TagAZ's equipment pledged as security for the loan.
The court earlier awarded VTB $38.6 million in its claim against several subsidiaries of Doninvest Financial & Industrial Group, including TagAZ. The court decision has already come into force.
The Taganrog Automobile Plant was founded in February 1997, and launched a joint venture with South Korean Hyundai in 2001. The plant can simultaneously produce up to six different car models on its primary conveyor. The plant's production capacity is 180,000 vehicles per year.