Regional authorities obliged to go down debt for equity route (210 words)

Published: 9/4/2001

According to the Bratsk regional administration, a Cyprus registered company Ajanta Trading Limited that represents ZAO Energoprom, has obtained a 48.08% shareholding in AO Bratsk Airport. AO Bratsk Airport was created out of the restructuring of the Bratsk Aviation Enterprise (Bratsk Airlines) and in the bankruptcy proceedings received the assets of the air company. The air company had been brought to the edge of bankruptcy by a combination of falling traffic and hard currency loans worth Rb200m to construct a runway, that were defaulted after the August 1998 financial crisis. The Bratsk administration has also reported that one of the shareholders of Energoprom is Lev Chernoy, the former owner of the Bratsk and Krasnoyarsk Aluminum Plants, who is viewed with some suspicion by the administration given his involvement in what are described as “shady deals”. Given Energoprom's status as the airline's largest creditor, being owed $1.8m, and the offer to swap the air company's debts for equity in AO Bratsk Airport, it would appear that the Energoprom's 48.08% holding may grow, despite an obvious lack of enthusiasm from the regional authorities, whose previous restructuring plans for the region's air transport system failed to materialize.

Article ID: 2734