Infantry Fighting Vehicles Manufacturer Of Russia Files For Bankruptcy

  • Our Bureau
  • 12:41 PM, February 10, 2016
  • 2706

Kurganmashzavod (KMZ) - Russia’s only enterprise manufacturing infantry fighting vehicles (BMP) has filed for a bankruptcy with the Kurgan Arbitration Court, the court press service said Tuesday.

The petitioner is MTE Group registered in Moscow, TASS reported. The petition filed on February 5 is yet to be accepted for hearing.

"The petition is connected with arrears on lease contracts of MTE Group and KMZ. Earlier the companies struck an amicable agreement, under which KMZ was to pay in two stages 41 million rubles ($515,000) of total debt on lease payments and some 1.9 million rubles ($23,800) of cancelation penalty," the press service was quoted as saying.

The court said Kurganmashzavod only paid 276,000 rubles ($3,460) out of the debt. "That’s why MTE Group demands that the plant be recognized bankrupt and that a bankruptcy commissioner be appointed," it said.

KMZ, making part of Tractor Plants concern, is Russia’s only enterprise producing infantry fighting vehicles being in operational service with the armies of nearly 30 countries.

KMZ in 2015 struck a long-term contract with Russia’s Defense Ministry to supply in 2015-2017 more than 200 BMP-3 infantry fighting vehicles to Russian army units.

KMZ had wage arrears and a debt for gas to Gazprom mezhregiongaz Kurgan company.

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