Authorities in Volgograd region are ready to support a bankrupt steel plant

© RIA Novosti / Konstantin Calebowhunter Volgograd region. Archival photoAuthorities in Volgograd region are ready to support a bankrupt steel plant© RIA Novosti / Konstantin Chalabov

The Governor of the Volgograd region Andrei Bocharov expressed support for the region’s bankrupt steel mill «Red October», the regional authorities are ready to pay a part of debts to suppliers, on wages and to secure contracts for the company, the correspondent of RIA Novosti.

Authorities in Volgograd region are ready to support a bankrupt steel plant© RIA Novosti / Michael Microchimeric in fotobank Volgograd has suspended production of the steel plant «Red October»the Governor of the Volgograd region met on Friday with the employees of the metallurgical plant» Red October» and expressed its position in connection with the bankruptcy of the enterprise. «We will not leave alone with problems. The situation is critical, complex, it is not associated with quality of production with demand, and inefficient production management. This led. All the company’s account blocked», — said at the meeting with Bocharov.

According to him, to save the company necessary improvement of the plant, among the support measures the Governor called the repayment region of the debt to suppliers and salary, assistance in completing the installation of pollution control equipment. «I spoke with the Ministry of industry, there is a possibility to provide the enterprise with orders, but we need to ensure their implementation», — said the Governor. Also Bocharov suggested to create the Supervisory Board which will include and community.

The arbitration court of Volgograd region on Thursday adopted a decision on the recognition of the metallurgical plant «Red October» insolvent (bankrupt) and the introduction of competitive manufacture for six months because of debts of 600 million rubles. Earlier, the representative of the plant told RIA Novosti that the debt is repaid to the tax and the main creditor — the Zlatoust steel plant, which bought the rights-claims of other creditors.

However, in the court of bankruptcy specialist tax service for the Volgograd region has submitted documents about the current debt in the amount of 130 million rubles in tax and insurance payments. According to the NRF, in addition, the plant discovered uncovered loss of 2 billion rubles by the end of 2017, borrowed funds in the 3 billion, total liabilities of enterprises amounted to more than 8 billion rubles.

On Friday arbitration by random sampling determined the bankruptcy Trustee of the members of the «First self-regulatory organization of arbitration managers» (Moscow). They became Sergey Kharchenko. After the decision of court on bankruptcy of enterprises have suspended production. «Red October» is one of the largest Russian manufacturers of rolled products of special grades for automotive and aviation industries. The company employs about 3.5 thousand people.