Rostec can write off, convert Russia’s AvtoVAZ 51 bln rbl debt

TOGLIATTI, Jun 23 (PRIME) -- Russian state industrial corporation Rostec will write off 20 billion rubles of car producer AvtoVAZ’s debt and convert the remaining 30 billion rubles into shares, Rostec Deputy CEO Sergei Skvortsov said Thursday at AvtoVAZ’s annual shareholder meeting.

“Management and the supervisory board of Rostec have made a decision to provide financial aid to AvtoVAZ by writing off a debt of 20 billion rubles and converting the remaining 30 billion rubles into AvtoVAZ’s capital. Certainly, these decisions can be implemented if they are approved by the Russian government and by our partner, Renault-Nissan alliance,” he said.

AvtoVAZ’s debt to Rostec stands at 51 billion rubles, he said.

AvtoVAZ said in February that its net loss nearly tripled to 73.851 billion rubles in 2015. Rostec, whose joint venture with the Renault-Nissan alliance holds 74.5% in AvtoVAZ, said then it planned to take measures to bailout the company.

(63.7163 rubles – U.S. $1)

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