Tupolev's appeal in $9.5 mln dispute with MiG to be heard on July 4
MOSCOW, May 12 - RAPSI. The Moscow District Federal Commercial Court will consider on July 4 a cassation appeal filed by Tupolev aircraft manufacturer in its $9.5 million litigation with MiG-Finans over a loan for finalizing the Tu-334 plane.
The court is handling two claims as part of one case: MiG-Finans seeks 287 million rubles ($9.5 million) as per the investment contract, while Tupolev contests MiG's termination of the contract in January 2010.
The Ninth Commercial Court of Appeals turned down both claims in March.
The parties signed the contract on November 19, 2001. MiG was to issue a $15 million investment loan to Tupolev so as to enable the finalizing of the new Tu-334 aircraft for certification.
The parties agreed that MiG should obtain the right to manufacture the Tu-334. Tupolev committed to repay the loan in installments equal to 1 percent of the price of each Tu-334 aircraft sold by MiG.
The contract was to become null and void if the government deprived MiG of the right to produce the aircraft.
MiG maintains that the contract must be deemed terminated as the government transferred the production rights to the S.P.Gorbunov Kazan Aviation Production Association on April 15, 2005.
Tupolev argues that MiG exercised its right to cancel the contract only 4.5 years later, thereby increasing the amount of interest. Tupolev also maintains that the government decision should not be considered a cause for termination.
Tupolev's core business is the development of Tu-204/214 and Тu-334 aircrafts. It is also in the process of designing Tu-330 cargo aircraft. The company is also considering upgrading long-range and naval aircraft. The United Aircraft-Building Corporation owns a 95.52-percent interest in Tupolev.
MiG Aircraft Corporation is leading aircraft company and the Defense Ministry's primary contractor. The company manufactures fighters and interceptors, multi-purpose combat aircraft, and light general-purpose planes for the Russian armed forces and for export.