Following a request made by the Russian government, the Russian state corporation bank for development and foreign economic affairs Vnesheconombank (VEB) is considering opening a Ruble 5 billion (approx. $158 million) credit facility for a period of seven years for Amurmetall, Russia's only steel producer in the Far East region, in order to aid the company's financial recovery and for the replenishment of its working capital.
On June 1, 2009, the Khabarovsk regional court in Russia initiated bankruptcy proceedings against Amurmetall. As a result of the hearing, the court imposed a seven-month surveillance period on the plant. Currently, Amurmetall is conducting negotiations with banks and bond holders in order to restructure the company's debts which amount to Ruble 20 billion (approx. $634.6 million). In addition, a financial model of the production, economic and financial activity of Amurmetall has been prepared for the period up to 2016, taking into account the restructuring of credits, loans and other accounts payable. The financial model will be proposed for examination to all the company's creditors in order to reach an amicable agreement.
According to Amurmetall's general director Sergey Hohlov, the plant is expected to resume operations and to achieve financial stability by the end of 2010.