| Other Photos |
 |
|
 |
MiG to Fly to UAC Burdened by Debts
The BOD of Russian Aircraft Corporation MiG held its first meeting yesterday to deliberate on the huge amount of company’s liabilities. The sources say the sum has reached $1.6 billion and roughly $320 million of that debt could be blamed on the cancellation of Algeria’s contract. The analysts say Ernst & Young will take it into account when assessing MiG before it merges with the United Aircraft Corporation (UAC).
MiG BOD met yesterday first time after the corporation became a joint stock venture. UAC President Alexei Fedorov was elected the chairman and MiG General Director Anatoly Belov became his deputy. The concern of the meeting was “the progress in contracts’ implementation and financial indicators of the corporation.”
No actual figures have been disclosed, but the sources say the payables reached $1.6 billion. MiG representatives declined to comment on the figures, specifying, however, that 80 percent of the amount is the bank loans raised for four to five years to execute contracts and fund production transfer from Moscow to Lukhovisty and Nizhni Novgorod.
“A bit more than 20 percent is the liabilities generated by Algeria’s refusal to execute the contract,” MiG representatives said, adding that Sberbank is the key creditor.
MiG was incorporated in March of 2008, and 100 percent of its stocks will be transferred to UAC in 2009. The corporation builds MiG-29 fighter jets of various modification as well as MiG-31E. Its order portfolio is roughly $4 billion and the 2011 to 2012 options account for $2.5 billion.
www.kommersant.com
All the Article in Russian as of Aug. 15, 2008
|
|
|
