Gazprombank's $103 mln suit against Far Eastern smelter to be heard on December 27
MOSCOW, November 28 - RAPSI, Alyona Yegorova. The court will hear on December 27 the Gazprombank's $103 million lawsuit against Amurmetall, the Russian Legal Information Agency (RAPSI) reports from the courtroom.
Amurmetall entered into a settlement agreement with its creditors, including Gazprombank, as part of its bankruptcy proceedings in December 2009. The amount claimed in this lawsuit is the same as the amount indicated in the bankruptcy case records.
Gazprombank has admitted in court that the settlement agreement is being implemented, but the lawsuit is intended to recover the loan as the terms of its security had been violated. In addition the bank believes that given the Amurmetall's financial and business conditions there is a repayment risk.
Amurmetall is the only Russian electrometallurgical works in the Far East. It smelts steel for bar-rolled stock and flat products. Its smelting capacity is 2.15 million tonnes of steel per year.
The works had to suspend production due to the shortage of operating capital and unfavorable world situation in May 2009. Although it resumed functioning in July, it had to underutilize its capacities for a long time.