Moscow arbitrage court granted a petition of "Moskvich" creditors and adjudicated automobile enterprise bankrupt. The decision to take the case to court was approved by committee consisting of representatives of Tax administration, Russian Ministry of Finance and Moscow government.

The main cause for claim is an exterior debt of almost $1 milliard, which closed the door to assembling of automobiles from spare parts. Moreover, term of plant administration expired and current legislation provides no prolongation. By statement of exterior manager of the plant Anatoly Sivakov, "final stage of bankruptcy is determined by hard economic situation of the enterprise".

Last year plant sold part of property, including manufacturing workshops, palace of culture and plant polyclinic, to pay off debts. The plant also earned 197 million rubles for leasing.

After settlement of bankrupt claim Aleksandr Ivanov was appointed the contest manager of the enterprise.
sections: Economics, Region News
areas: Central region