Rostec doesn’t want legal battle with creditor of Krasny Oktyabr in London

State-owned corporation Rostec and company RT-Capital, controlled by it, have received the right to appeal the decision of the London court to put them as defendants on the suit of the London branch of the Austrian Erste Group Bank AG (Erste), one of the creditors of the bankrupt Volgograd metallurgical plant Krasny Oktyabr.

The Volgograd plant was granted a loan for $80 million in accordance with the contract dated 2007. One of the creditors was Erste, the court documents state. However, the terms of payment in the amount of 1.66 million expired in July 2009, the debtor didn’t fulfilled its obligations. Erste claims that this was made intentionally, in collusion between Rostec and other defendants, controlled by the state-owned corporation in order to deprive the borrower and the guarantor on the loan of assets and to announce their insolvency.