The End Of An Era: Kalashnikov Maker To Seek Bankruptcy

Tyler Durden's picture

Presented without comment. Well one: Zero Hedge staff is currently scouring through the firm's capital structure to determine which debt tranche Goldman is fully invested in and is about to equitize and obtain full control of the AK-47 maker.

Text of report by Gazprom-owned, editorially independent Russian radio station Ekho Moskvy on 21 September

[Presenter] Russia's largest small arms manufacturer, the Izhevsk Mechanical Works [Izhmash], could be declared bankrupt. It became know today that a corresponding petition has been received by the arbitration court of [the Republic of] Udmurtia from the enterprise.
Aleksey Gusarov reports.

[Correspondent] The Izhmash concern, considered to be the pride of the Russian defence industry, could become unprofitable. The arbitration court of Udmurtia will now study the financial documentation of the joint-stock company. If the results of the court examination recognize the bankruptcy petition as justified, the concern's restructure will begin. Bankruptcy proceedings, should they happen, will help Izhmash rid itself of debt burdens. Moreover, experts do not rule out that a new wave of unemployment will sweep over Udmurtia in this case.

I would like to recall that earlier, production came to a halt at the Molot plant [Vyatskiye Polyany Machine Building Plant Molot] in Kirov Region, a part of the Izhmash concern. This largest Kalashnikov assault rifle manufacturer now stands idle. No state order means no money to pay employees, nor to repay debts to creditors.

[Presenter] It is expected that Udmurtia's arbitration court will hold a preliminary examination of the Izhmash case on 7 October.

h/t Bankster

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jdun's picture

It's not the best assault rifle. It did what it supposes to, that is inexpensive to produce. It is at the pinnacle of its' ideological, “disposable rifles for disposable troops.”

 

Anonymous's picture

Exactly, the m16 is far more accurate.

MsCreant's picture

The AR 15 will be thrown away before the AK47. That's why they give them to children, even they can do the maintenance on them. The Glock of the Rifle world.

jdun's picture

It isn't hard to maintain the Ar15. It does however need more lube then the AK. Both rifles will malefaction if the operator lack cleaning standard.

The AK isn’t a bad rifle. It does have very bad ergo, tho.

 

 

 


 

Hephasteus's picture

AK47 is more likely to stovepipe rounds and more likely to cook off rounds if you've been firing too fast becasue it just burns more powder each round. That's why they made the brass so thick on .308 nato because it can stay in a hot machine gun longer before cooking off and why the brass is so thick on 7.62x39.

bpj's picture

AK-47 is a great gun if you're an ivory poacher. Navy Seals opt for the M-14 because they see the advantage of a 1000 yd gun vs 400 yd gun. Furthermore, there now is body armor that can stop a 7.62X39. Not so with the 308 Remington.

Palestinian Security Forces all opted for AR-15, AK47 was too ghetto for them.

If the Beltway Sniper had been using an AK instead of an AR, maybe three dead instead of 10.

Anonymous's picture

It's .308 Winchester and it's not (exactly) the same as what the military uses - 7.62x51.

Anonymous's picture

ok , would you like to name one that you think is better?

i am all ears...

also as an aside

interesting article in haaretz today

http://www.haaretz.com/hasen/spages/1115891.html

Zbigniew Brzezinski, the former national security adviser to U.S. President Jimmy Carter, said today, that U.S. forces should forcibly prevent the Israel Air Force from reaching Iran to strike its nuclear facilities.

don't ask me to explain this. when all of this iran attack stuff started, our boy, the former security adviser for carter, was , as it seemed, all for this attack. now this.
something is going on now, it would seem. maybe the neocon war hawks are stepping back from the precipice of thermo nuclear war.......one can only hope. this proposed attack on iran is national suicide and simply is insane....

the israelis are always talking shit about how bad they are, etc. the fact is all they have ever fought is some unorganized bedouin. if they want some, come and get some, is all i can say about it. and as far as their 4 little german made subs wandering around the ocean depths, would it not be so, that these minor headaches could be dealt with in a matter of minutes, perhaps even before they launch their suicide sampson option nuclear tipped cruise missles.....some of you may say......what is all of this? as i have told you before, you have no idea what is really going on out here in this old world my friends......stay tuned about all of this....

jdun's picture

The Ar15 is the best rifle in the world. It is used by the best warriors in the world. No one has developed a better rifle then it.

 

Keep in mind the mechanical limits of small arms more or less have been reached. Newer rifles are just rehash of old designs. Take for example the SCAR. It’s an AR18 with a new body but the same soul.

 

Broken_Trades's picture

You say:

 

"the israelis are always talking shit about how bad they are, etc. the fact is all they have ever fought is some unorganized bedouin. if they want some, come and get some, is all i can say about it."

 

Pretty sure that in 1967 Israel pre-emptively attacked Egypt and won a battle against 100,000 troops including over 900 tanks, 1000 APCs, and 1000 artillery peices.

Just sayin....

Anonymous's picture

Ever heard of the seven day war? Israel took on all of its neighbors at the same time and won! They had air supperiority after the first day and the Egyptians sued for peace!

Budd Fox's picture

It works always...and without maintenance. In a bad situation in the middle of nowhere...I will take up the AK 47 on the M16 as a no brainer.

Bob Dobbs's picture

Like any autmatic gas operated weapon, the wear rate is proportionate to how often the weapon is fired CLEAN.  The 16, and 47 both wear out fast when their dirty.  I'll take an A-bolt 8mm Remminton mag.

Anonymous's picture

who are the "boonies"?

Señor Tranche's picture

Incorrect.  Anybody at a gun show will tell you that the best are Norinco, made in China.

Anonymous's picture

Not sure about the "best" comment. Are you a gourmand, too?

This is overall good news for the world--it means that the insane war machine may actually be abating. The arms industry is a gigantic waste for the most part. A waste of raw materials and a waste of labor.

deadhead's picture

"...resulting in a dramatic pop in the regional stock market, where three Atari 2600 machines trade 10 shares of the one listed stock."

Your intros are consistently filled with funny as shit stuff.  This one is a gem. It makes my continuing financial education a pleasure.  Really.

 

 

jdoo's picture

Agree that the comments are hilarious.

 

I did some google searching and it looks like there isn't a TCP stack available for Atari 2600.  As far as I'm aware, C64 or maybe the Atari 800 PC are about as ghetto as you can get and still have a working TCP stack, to be used for maximum trading profits!

For what it's worth, C64 has a functional GUI web browser with mouse support: http://www.armory.com/~spectre/cwi/hl/

:D

Bob Dobbs's picture

There was a move afoot to port the modified BSD stack in the early 90's, but nothing much came of it.

i.knoknot's picture

does 9600 baud count as 'flash' in that part of the world?

Howard_Beale's picture

Hi DH--just got back from Toronto and am off to the west coast for 3 weeks. Also just got a Kindle and it is kinda wonderful since I can read ZH at no cost on 3G.

Question: Any great books you can recommend--I've got about 20 in the cue for the 1st chapter read. Willing to take any recommendations in the non-fiction realm of late (which I have read many but it is my way). Any help, greatly appreciated!

Kindly,

Howard

deadhead's picture

I just finished the one by the Time economics reporter, "the myth of the rational market"....struck me as more of a historical summary of economists and the evolution and divergence of the rational market camp and behavioral economic camp...

lot of references to black/shoals (spelling I know) and the thinking behind the math, which would likely be of interest to you re: your options expertise. 

edit: author is Justin Fox

Village Idiot's picture

If you haven't already read it - In The heart Of The Sea.  The first written account of a whale attack on a ship - Moby Dick was roughly based on this story.  A great seafairing yarn - even if you aren't into that kind of reading. Story is set during the peak of the whaling trade, around Nantucket Island. If you decide to pick it up, let me know what you think.

Anonymous's picture

to change your life forever. read the little book,

waters flowing eastward by Mme. Paquita de Shishmareff

the wife of a former czarist officer, who witnessed the fall of russia to the communist.

or if you are fluent in german, french, or russian, read

200 years together, by the greatest author and historian of the 20th and early 21st centuries....Alexander Solzhenitsyn.

for some reason it is not in english yet, but maybe someday huh?.....

Bob Dobbs's picture

Anti Semetic screed.  A wrap of the Potocols of Zion.  Why post this here?

Anonymous's picture

as long as timmy and the beard are guiding this ship, check out "the grapes of wrath" for an in depth look at what our future holds.

Anonymous's picture

"Suicide: The Forever Decision"

Maybe you can have a productive trip to the west coast after reading this book on your Kindle or iPhone. (at 3G) It would be wonderful if you and Cheeky could get some ideas from this book, on your 3G Kindle.

ratava's picture

Ghost Wars. Awesome non-fiction about the shit CIA did in Afghanistan/Pakistan/Saudi Arabia since the 70s.

Bob Dobbs's picture

Dr. Zhivago, Crime and Punishment, Anna Karenina, Dead Souls.  Russian all.

ShankyS's picture

LOL that one was a classic. I'm assuming GS upgrade will come anyway? I'm glad TD and crew can keep their sense of humor, I'm about to lose mine.

Anonymous's picture

Be careful what you jest lest it come true.

putbuyer's picture

I think there might be something wrong with my brain.

http://www.youtube.com/watch?v=BPNfWFbiCOQ

Avenge me, avenge me called out the father in

Red dawn (part 3).

IamTheCarpenter's picture

The woodgrain on a Polish folder is a beautiful thing . . .

putbuyer's picture

In Connecticut, polish is a very unique brandy. We

call our liquor stores package stores. So we say, go to

the package store and get me a pint of Polish.

Everyone knows what that means, even though the

words package and Polish dont exist in the store.

jdun's picture

I would not go long on AK. Ak has been losing market shares around the wold to AR15.

 

 

MsCreant's picture

AK = Power, ease of use, durability

AR = Precision

Different tools for different jobs really. If I want to stop an engine, I won't like the AR so well.

I think there is something I do not understand about all this.

jdun's picture

The Ar15 is very durable very reliable. I own both. I own 7 AR with a lot of stripped receivers. I own 2 AK.

Durability and reliability isn't the same. Durability you have to give it to the AR because it isn’t made out of 1mm sheet metal. Reliability, the AK has a small edge because it doesn’t require as much lube as the AR.

 

MsCreant's picture

We could do this all night friend. Does not seem wise to be specific about what one has in terms of arms. Watch this, you decide:

Best rifle in the world:

http://www.youtube.com/watch?v=fQzh7A5Gam8

AK baybay!

jdun's picture

I’ve been debating the AR vs AK for a long time.

All you need to look is who use them. The best warriors in the world use AR not AK. You look at the independent contractors in Iraq and Afghanistan. What do they use? AR.

I have personal experience in both of them and I can tell you that AK does jam and it does break. I don't need a stupid show to tell me which is the best. It is a rifle that is made out of 1mm sheet metal that you can buy from a hardware store.

 

Here is a video in Iraq where the AK jammed and then KB!

http://rpginn.com/index.php?option=com_content&task=view&id=605&Itemid=39

1mm AK flat. Fold it up and you got an AK receiver.

http://www.copesdistributing.net/product_info.php?cPath=32_34&products_i...

 

MsCreant's picture

I have two words for you Doll-- Chamber brush.

I'll go check your videos.

MsCreant's picture

"AK-47 Blows Up On A Security Contractor At A Range In Fallujah"

Chinese ammo? :-) Ouch!

If you have no support for 11 months in the field, which one do you want?

If you are in the US with a nice AC and your armorer right there to handle any probelms that come up, which do you want?

Okay, I'll fess up. I have an AR. For a girl gun, it is pretty good. I like that it lacks kick. It was kind to learn on.

Anonymous's picture

Picture of the month. Make sure you scroll down to see the before pictures.

http://www.dealmakersblog.com/the-sickest-fix-flip-everwith-a-43k-profit/

Anonymous's picture

which boonie ?

SloSquez's picture

The AK is the perfect example of good enough.  Piece of shit in my opinion which functions without fail in many environments.

Anonymous's picture

easy to assemble, has few moving parts, works in any env, reliable, was actively produced since 1947 thats over 60 years without any modifications to the original design - o yea, it is piece of shit.

Anonymous's picture

I am truely saddened by this news. If we can bailout banks, auto makers, newspapers, etc... we should certainly lend a hand to the maker of the AK-47. Hasn't some of the TARP money been repaid? The American taxpayers could get a discount on a brand new AK-47 in some sort of "Cash for Kalashnikov" program. Throw in a couple thousand rounds of 7.62x39 hollowpoints, and this is a government program I could support.

MsCreant's picture

They already did this, it was called the Obama Election. Prices doubled and tripled.