NOVOSOBIRSK, February 28 - RAPSI. The Government Commission on Preventing the Bankruptcy of Strategic Enterprises decided on Monday to allocate $11.38 million in subsidies to the Sibselmash, Novosibirsk's largest machine builder, Novosibirsk Region Industry Minister Sergei Semka told RIA Novosti.

A supervision procedure was initiated at Sibselmash, whose credit debt amounted to 1.02 billion rubles ($35.17 million), in July 2011.

In December 2011, the creditors' meeting voted for the conclusion of an amicable agreement with the enterprise which came into effect after being approved by a commercial court.

Pursuant to the court ruling, Sibselmash was obligated to pay the debt within 30 days from December 26, 2011. But the enterprise failed to do so. The plant owes the major part of the debt amounting to 330 million rubles ($11.38 million) to the Federal Tax Service.

The Novosibirsk Region Commercial Court was to examine the service's petition to terminate the amicable agreement under the Sibselmash bankruptcy case and to resume bankruptcy proceedings. But the court put off the petition until March 27 since the government commission was expected to decide on the subsidies to Sibselmash on the same day.

Some creditors objected to the postponement, saying that 300 million rubles ($10.34 million) is only a third of the amount claimed.

Sibselmash produces agricultural vehicles, mining equipment and defense hardware.