MOSCOW, February 5 (RAPSI) – The Rostov Region Commercial Court on Wednesday declared the Taganrog Automobile Factory (TagAZ) bankrupt, and opened five-month supervisory proceedings, RAPSI reports from the courtroom.

In March 2013, an 18-month supervision was initiated at the plant by court order. Later the appointed administrator filed for bankruptcy. The external management plan was not implemented, and measures to restore the plant’s ability to repay the creditors showed no effect. The court noted that the plant’s total assets worth less than the current amount of debt.

TagAZ previously filed for bankruptcy in April 2012. Its debts reached 20 billion rubles ($632.72 million) after production dropped three times in 2009. In 2010, the plant managed to reach an agreement with most of its creditors on debt restructuring, with the exception of VTB. TagAZ owed the bank 5.8 billion rubles ($183.49 million). In 2010, VTB filed several lawsuits against the plant.

TagAZ was founded in February 1997 and launched a joint venture with the South Korean Hyundai in 2001. The plant could simultaneously produce up to six different car models on its primary conveyor. The plant's production capacity was 180,000 vehicles per year.