No immediate settlement evident (350 words)

Published: 12/5/2000

The creditors committee of MVZ has met recently with two clear factions emerging among its members. One led by the current temporary manager Vladimir Bogocharov and the other by the plant's largest creditor Interregional Investment Bank (MIB) with both sides unable to find sufficient common ground to strike a an intermediate agreement. MIB had applied to the Moscow Arbitrage Court against the appointment of Bogocharov on the 16th October, but the court did not uphold the objection and confirmed the appointment on the 22nd of November. At the same time, the court gave legal status to the creditors committee overturning its decision of the 12th of October to not give such status to the committee. Given that the committee supported the the appointment of the other candidate for the temporary manager's position the previous temporary manager Leonid Zapolsky and supported his plans the situation is by no means resolved. It is unclear however, what impact this has on the workings of the committee, as it continues to seek an agreement. Bogocharov has said that he will try to revise the composition of the present committee, but emphasized that he is keen to work with them as presently constituted. Although at the creditors meeting, the two sides outlined their objectives: Bogocharov suggested that creditors should vote for a new committee and MIB suggested approval of the work of the former manager. Neither proposition received sufficient support to be passed. The committee agreed to a new meeting of in two weeks. Bogocharov declined to comment on the meeting saying that he would make a statement later. The chairman of the creditors committee, Yury Kruglyakov announced that the committee had instructed Bogocharov to develop and present a program for changes to the current external administration and the agreements covering the settlement of outstanding debts to the creditors committee in seven days. Kruglyakov noted that the external administration expires on the 16th of December, but the creditors still have 10 days to reach an agreement covering the settlement of debts. The committee also intends to apply for an additional period to allow the settlement to be concluded.

Article ID: 2229