Amicable agreement in $20mn dispute between plant and state agency approved
ST. PETERSBURG, January 20 - RAPSI. An appelate court approved an amicable agreement between St. Petersburg's Proletarsky Zavod and the Deposit Insurance Agency on the settlement of debts under a credit contract worth $19.99 million, according to the court.
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.
In late November, the court terminated the bankruptcy case of the St. Petersburg-based machine-building plant, which was initiated upon the Deposit Insurance Agency's request. The United Shipbuilding Corporation acquired a controlling stake (52.75 percent of the charter capital) in Proletarsky Zavod under a government order.
Since 2004, the stake in the plant belonged to the East European Finance Corporation, whose head has been placed on the wanted list. The plant's financial obligations have been transferred to the agency.
The corporation plans to perform an inventory at the plant. The government will also be given a program to help rehabilitate the plant and modernize its business.
The plant is the largest primary marine and mechanical engineering equipment supplier in Russia.