Largest creditor refuses debt repayment (200 words)

Published: 12/20/2000

200 On the 18th of December the Moscow Arbitrage Court extended the external administration for helicopter producer MVZ until the 16th of June 2001, after reporting that it considered the external management's work to be satisfactory. This view was however, not shared by the creditors committee, which demanded the appointment of a new external manager of the plant, without naming a candidate. Commenting on the court's decision for daily Kommersant, the current temporary manager Bogocharov said " with the extension of external administration for a further six months, I will continue to work to prepare a restructuring agreement." Recent developments have suggested that the intervention of state investment company Gosincor in collaboration with Bogocharov are aimed at bringing the company back into state control. He also added that the plant's largest creditor, investment bank MIB, had returned the funds transferred as payment for outstanding debts by MVZ, the funds provided by a loan from Gosincor, stating that the monies had been money "transferred to a wrong addressee". This supports MIB's earlier statements about their unwillingness to be removed from the restructuring process and its relative rewards. Bogocharov however, appeared undeterred by the bank's refusal saying, "now I can send this money to MIB via a notary".

Article ID: 2254