ST. PETERSBURG, November 28 - RAPSI. A court has terminated the bankruptcy case of the St. Petersburg-based machine-building plant, which was initiated upon the Deposit Insurance Agency's request, the court documents read.

The court has accepted the agency's withdrawal of the bankruptcy application filed against the Proletarsky Zavod and terminated the proceedings, the court's judgment reads.

The Deposit Insurance Agency acted in the case as the assignee of VEFK Bank, which granted a loan to the Proletarsky Zavod in 2008. According to the court materials, the machine builder owed the agency 1.9 billion rubles ($60.1 million). However, the company is suing the plant for 1.2 billion rubles ($38 million) in debt.

The St. Petersburg Commercial Court held for three lawsuits in October filed by the agency for 1.09 billion rubles ($34.5 million). The Proletarsky Zavod said it expects to sign an amicable agreement to restructure the debt. He noted that "the parties are agreeing on the settlement."

The United Industrial Corporation acquired in October a 52.75-percent stake in the Proletarsky Zavod upon the government's order.

The Proletarsky Zavod is one of the oldest machine-building enterprises in St. Petersburg. It produces about 90 percent of its products to cover the Defense Ministry's needs.