PRESS: Russia’s Ilyushin Finance can consolidate 100% in Red Wings

MOSCOW, Nov 7 (PRIME) -- Russian leasing company Ilyushin Finance Co, controlled by United Aircraft Corporation (UAC) and VEB Capital, plans to consolidate a 100% stake in airline Red Wings, business daily Vedomosti reported on Monday, citing a source close to one of the deal parties.

Officials of Ilyushin Finance Co and Red Wings confirmed the information.

The owner of Red Wings Sergei Kuznetsov agreed to give away a 74% stake in the company to Ilyushin Finance Co in exchange for a debt write-off in 2014 and to keep the remaining shares.

The source told Vedomosti that Ilyushin Finance will receive a certain stake for debt and buy the remainder, and as a result will consolidate 100% in the airline. The amount of the deal was not disclosed.

The Red Wings’ fleet comprises seven Tupolev Tu-204 aircraft, owned by Ilyushin Finance, and one Tu-214. The company used to own five Sukhoi SuperJet 100 (SSJ100) planes but the leaser, State Transport Leasing Company (STLC), took them away for nonpayment.

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