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$10.3 mln settlement between plant and Deposit Insurance Agency approved

14:36 26/01/2012

ST.-PETERSBURG, January 26 - RAPSI. The court has approved a settlement agreement between St. Petersburg's Proletarsky Zavod and the Deposit Insurance Agency (DIA) regarding its $10.3 million debt, the Supreme Commercial Court's website reports.

The Proletarsky Zavod is one of the oldest machine-building enterprises in St. Petersburg. About 90 percent of its products are made for the Defense Ministry.

As the East European Finance Corporation's assignee, the DIA sought to recover 179.5 million rubles ($5.8 million) as principal debt, 39.73 million rubles ($1.3 million) as interest accrued from April 1, 2009 to July 1, 2011, and 96.32 million rubles ($3.1 million) as late payment penalties under a loan agreement dated October 2007.

A higher court is now considering the plant's appeal to settle with the DIA regarding the 148.32 million ruble ($4.8 million) loan provided in March 2007. The court approved a similar settlement for 625.25 million ruble ($20.4 million) loan in January. According to court records, the plant's debt to the DIA totals 1.9 billion rubles ($62 million).

In late November, the court terminated a bankruptcy case against the plant, which had been initiated by the DIA. The United Shipbuilding Corporation acquired the controlling stake (52.75 percent) in Proletarsky Zavod upon a governmental order. Since 2004, the stake in the plant belonged to the East European Finance Corporation, whose head has been placed on the federal wanted list. The plant's financial obligations have been transferred to the DIA.

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$10.3 mln settlement between plant and Deposit Insurance Agency approved

14:36 26/01/2012 The court has approved a settlement agreement between St. Petersburg's Proletarsky Zavod and the Deposit Insurance Agency (DIA) regarding its $10.3 million debt.
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