Armenian Nairit chemical plant's debt to be written off
"The draft agreement suggests a concession of the right to credit claims with respect to Rhinoville Property Limited company by Interstate Bank Armgazprom (the latter operates Nairit and is not linked with Gazprom Armenia) for $100 with a total net book value and secured assets. The total amount of the loan is $70 million," energy and natural resources minister Yervand Zakharyan said.
According to him, the CIS Interstate Bank is also asked to cede the right to credit claims with respect to Nairit plant to Nairit-2 cjsc for $100 with a total net book value and secured assets. (In this case the size of the loan is $110 million and the entire real estate property is secured as collateral.)
"The agreement is being now reconciled and will shortly be signed. In July, it will be finalized ,' said Zakharyan.
In early April, Central Bank chairman Arthur Javadyan said the CIS Interstate Bank may write off the debt of Narit chemical plant in Yerevan and return the bank’s shares to the Armenian government.
He said the government of Armenia asked the Interstate Bank to show goodwill and write off the plant’s debt and return its secured shares to the Armenian government given the fact that its chances of repaying the debt were equal to zero.
According to him, the plant’s debt stands at 102 billion drams, including 63 billion dram to be paid as loans.
On January 22, 2014 the Moscow Arbitration Court ruled that Rhinoville Property Limited, the owner of Nairit chemical plant in Armenia pay $107.95 million to the Interstate Bank. Particularly, the court ordered that the company pay $68.6 million of principal debt as well as interests and penalty on an Interstate Bank loan.
Nairit was the only plant in the Soviet Union to produce chloroprene rubber. The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992. In 2006, 90% of Nairit’s shares were sold to British Rhinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government.
Rhinоville Property Limited has been co-founded by the Samex company (Poland), Intertex (USA) and Evrogaz (Russia). In 2010 production was suspended at the plant. The back wages in late 2013 were worth $12 million.
The Interstate Bank was founded in 1993 by ten CIS countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. The bank promotes development of CIS member countries’ national economies. - ($1-476.17 drams).-0- -