The End Of An Era: Kalashnikov Maker To Seek Bankruptcy
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.
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