Avtovaz has pledged 3.7 billion rubles worth of vehicles and equipment

Avtovaz has pledged 3.7 billion rubles worth of vehicles and equipment

Interfax – Avtovaz has pledged 3.7 billion worth of vehicles and equipment to Rosbank, according to the Federal Register of Information about the facts of legal entities data.

As reported in October, Avtovaz has pledged the finished vehicles in its parking lot and its equipment in Globexbank, however, the amount of pledge has not been revealed. The company pledged equipments, vehicles, instruments and components amounting to more than 6.167 billion rubles to Vneshekonombank in September and equipment worth 2.655 billion rubles to Unicredit Bank in July. Previously, Avtovaz had also pledged vehicles at the worth of 1.33 billion rubles and equipments, vehicles, instruments and components in the sum of 2.4 billion rubles to Rosbank. The amount of a previous pledge of equipments made by the company to Sberbank has not been disclosed, on the other hand.

As reported, the net loss of Avtovaz has tripled in 2015 to 73.85 billion rubles, according to IFRS. The company has stated a need for assistance from its shareholders, Rostec and the Renault-Nissan alliance as a possible scenario, considering recapitalisation support by making additional funds in the company’s share capital and the partial conversion of debt.

The company has launched a financial recovery procedure. The shareholders of Avtovaz have approved the increase of the authorised capital of the company to 3 billion 281 million 250,000 shares, at an extraordinary meeting on 10 October. It was noted that the company has the right to allocate ordinary shares in the amount of 15 billion shares with a par value of 5 rubles each, in addition to allotted shares. The company plans to raise 25 billion rubles, as a result of the additional share issue. As noted by the company previously, Avtovaz needs 85 billion rubles in total, for financial recovery.