TaGAZ appeals $70 mln award in favor of VTB bank
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MOSCOW, October 19, Alyona Yegorova. The Taganrog Automobile Plant (TaGAZ) and Russlegavto have appealed the Moscow Commercial Court's ruling to recover a $70 million debt in favor of VTB bank, the court told the Russian Legal Information Agency (RAPSI).
On June 6, the Moscow Commercial Court recovered $52.74 million in principle debt and about $17 million in interest and penalty. The court partially upheld VTB bank's claim. The initial bank claim amounted to $77.6 million. In addition, the court recovered from TaGAZ a $3 million penalty. The appeals court in September upheld the earlier ruling.
The lawsuit concerns the failure to repay a loan extended to Russlegavto in June 2008. The principle debt amounts to about $50 million. TaGAZ was the loan guarantor.
This is not the only VTB-TaGAZ dispute on recovering loans. In November 2010, the court recovered from TAGAZ 726.9 million rubles in debt under the loan. The appeals court upheld the ruling and later the court granted to TaGAZ a deferment for debt repayment.
TaGAZ was formed in February 1997, and in 2001 it began to cooperate with Hyundai. TaGAZ's production capacities make it possible to produce on the main conveyer up to six car models simultaneously to a total of 180,000 cars yearly.