Avtovaz is in bankruptcy

Despite the allocation of funds giant Russian company Avtovaz - manufacturer Lada cars in which Renault holds 25% shares, is on the verge of bankruptcy, in need of over 2.3 billion dollars to avoid collapse.

"Avtovaz is in bankruptcy, despite huge allocation of funds," said Sergei Stepashin, head of the Audit Authority in Russia, on the situation Lada car manufacturer.

The company reported first half losses to 19.6 billion rubles (653 million dollars), more than nine times the negative result in the same period last year.

According to government data, Avtovaz needs at least 70 billion rubles (2.3 billion dollars) to avoid collapse. Russian President Vladimir Putin has sought to help finance the Renault car manufacturer, warning that otherwise, holding the French group could be reduced.

Source:  http://www.gm-avtovaz.ru/new_en/

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