The Rostov Regional Commercial Court registered an application filed by Taganrog Motor Works (TagAZ) for its own bankruptcy.
The hearing date has yet to be scheduled.
The court terminated proceedings in VTB Bank's request to declare Taganrog Motor Works (TagAZ) bankrupt in December 2011 as VTB withdrew its application.
The debt burden of TagAZ increased up to 20 billion rubles ($678.8 million) after production dropped three times in 2009. In 2010 the motor plant managed to agree with most of creditors on debt restructuring, except VTB. TagAZ owed the bank 5.8 billion rubles ($197 million).
In 2010 VTB filed several lawsuits against TagAZ for 726 million rubles ($24.6 million), $38.6 million, $70 million, $60 million and 774 million rubles ($26.2 million). The court levied execution on the plants equipment pledged as a security for loans.
In July 2011 TagAZ secured a suspension of 726 million rubles ($24.6 million) debt recovery until late December 2011. The plant was also allowed to repay debt by installments until December 2012.
In September 2011 VTB filed an application with a commercial court to declare TagAZ bankrupt.
TagAZ was founded in February 1997 and launched a joint venture with the South Korean Hyundai in 2001. The plant can simultaneously produce up to six different car models on its primary conveyor. The plant's production capacity is 180,000 vehicles per year.
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