For settlements with creditors

Yesterday it became known that the creditors of Volgograd Tractor Plant OJSC decided to introduce bankruptcy proceedings at the enterprise. In their opinion, this is the only way the company will be able to pay off its accounts payable, the amount of which, according to the latest data, is about 1 billion rubles. The current owner of the group of companies created on the basis of the tractor plant states that all issues with creditors will be resolved, including through the sale of shares of several companies that VgTZ still owns and the proceeds from the sale of which will allow repaying most of the debts. OJSC "VgTZ" is one of the largest machine-building enterprises in Russia. Founded in 1930. Engaged in the production of tracked tractors: since 1963 - DT-75. Now the main products are models VT-100 and VT-150. The VT-180 model is being tested. In 2003, the plant sold 1,651 tractors worth 818.9 million rubles.
Over the past three years, VgTZ has changed owners several times. In 2001, the plant was acquired by the MDM group, which after some time transferred it to the management of the investment company RINACO. To optimize the structure of the enterprise, the new owner restructured it in 2002. The scheme used was quite standard: four structures were created on the basis of the old enterprise, into which about 80% of VgTZ assets and almost the entire workforce were transferred. The successors of VgTZ were OJSC "Tractor Company VgTZ" (production of tractors), OJSC "Territory of Industrial Development VgTZ" (infrastructure and free space), OJSC "Volgograd Machine-Building Company VgTZ" (defense products - airborne combat vehicles) and OJSC "Rosmashkom" (production spare parts). After the reorganization, the old OJSC was left with illiquid property of the plant and its debts in the amount of more than 1 billion rubles, more than 60% of which is debt to VgTZ Foreign Trade Company LLC and Rosmashkom OJSC. Another 30% are debts to budgets; the remaining amount is shared by about 30 enterprises.
At the beginning of 2003, the RINACO company sold the Volgograd Tractor Plant group of companies to the Industrial Investors group, controlled by entrepreneur Sergei Generalov. Soon, on the basis of the Volgograd plant and the assets of Sibmashholding, Agromashholding was created, which, in addition to VgTZ, included the Krasnoyarsk Combine Harvester Plant, the Nazarovo Machine-Building Plant, Altaidiesel and the Kostanay Diesel Plant.
VgTZ's creditors hoped to get their money back whenever a new owner came to the plant. Having not received money, a number of creditors tried to initiate bankruptcy proceedings at VgTZ OJSC. But in March 2004, the company itself initiated its own bankruptcy. This decision was predictable. Even during the restructuring, it was planned to bankrupt the “shell” of VgTZ, providing for the opportunity to pay off creditors as much as possible.
On March 15, a monitoring procedure was introduced at VgTZ OJSC, and on November 12, the company’s creditors at a general meeting decided to introduce a bankruptcy procedure at VgTZ. As VgTZ told Kommersant yesterday, it is impossible to repay the entire amount of accounts payable at once, taking into account penalties and fines, so the creditors decided to repay the debts by selling the property of the tractor plant at auction.
Representatives of OJSC VgTZ yesterday refused to say whether the company has enough property to sell and pay creditors. The plant reported that the situation will become clearer after the bankruptcy estate of the enterprise is formed. It is not yet clear what assets may be included in this “mass”. As Kommersant learned, one of the most valuable assets of VgTZ are the shares of several companies owned by the tractor plant. Director of the Agromashholding press center Tatyana Shvichikhina yesterday confirmed the presence of shares in “several companies” that will most likely be included in the bankruptcy estate. Ms. Shvichikhina refused to name these companies, noting only that they are quite liquid and their sale will make it possible to pay off most of the debts. VgTZ creditors interviewed by Kommersant also know nothing about the shares. However, Kommersant learned from its own sources that these could be shares of four newly created OJSCs, which are currently managed by Agromashholding, and which could indeed arouse keen interest among both creditors and other potential investors.
Kommersant will monitor developments.
SVETLANA BAZYLCHIK

Kommersant (Volgograd) No. 220 dated November 24, 2004

Tractor plant will go under the hammer