07 June 2004 10:47
GAZ TO RESTRUCTURE EURO DEBT
NIZHNY NOVGOROD. June 7 (Interfax) - Gorky Automotive Works (GAZ), which is part of Ruspromavto, a major grouping of
Russian auto companies, is to restructure its debt on funds received from a Nizhny Novgorod regional euroloan,
Ruspromavto General Director Alexander Yushkevich told the press.
Earlier, Vadim Sobolev, the regional finance minister, said the
ministry was ready to write off some part of the plant's debt on
Restructuring talks with the Nizhny Novgorod regional government are almost complete and Ruspromavto sees
"favorable relations towards GAZ from the regional authorities," he said.
interest payments.
On March 1, 2004, GAZ had past-due debt on the euroloan of $10.84 million, including $5 million in principal debt,
$963,67 in interest and $4.873 million in interest for past-due payments, according to the regional Finance
Ministry.
The regional authorities are also holding talks with GAZ on restructuring its debt on a $5.5 million loan, which the
plant received from funds allocated to Nizhny Novgorod region by a syndicate of foreign banks in 1998.
The regional Finance Ministry would like GAZ's debt to be restructured before 2007, Sobolev said.
Nizhny Novgorod region issued five-year Eurobonds in October 1997 worth $100 million at 8.75% annually with biannual
coupon payments. The region defaulted on a coupon payment of $4.375 million in October 1999 and reached an agreement
with its creditors on restructuring the Eurobond in December 1999.
The Eurobond funds were used to extend subloans worth $73.5 million for 21 investment projects. The major borrowers
are the Nizhny Novgorod administration, GAZ, Pavlovsky Avtobus, Oksaya Shipyard and the Nizhny Novgorod Aircraft
Manufacturing Plant Sokol.
[Interfax] |
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