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Court approves Russian newsprint producer Volga's petition to restructure debt to energy provider

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Court approves Russian newsprint producer Volga's petition to restructure debt to energy provider

March 17, 2016 - 00:41
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BALAKHNA, Russia, March 17, 2016 (Press Release) -This will enable the Mill to operate in the normal way.

On March 04, 2016 the Arbitrazh (Commercial) court of Nizhny Novgorod region allowed JSC Volga’s petition for an instalment plan in the execution of the court decision in PAO MRSK of Centre and Privolzhie’s [Interregional Distribution Grid Company of Centre and Volga Region] case against JSC Volga. The case concerns the recovery of 658 million roubles in debt for the electricity transmission services.

The Paper Mill filed a petition requesting the debt be payable by instalments citing its inability to execute the court decision in one-time payment.

The court ruled that Volga’s indebtedness to PAO MRSK of Centre and Privolzhie will be repaid by equal monthly installments over a period of two years.

Volga’s management sees a viable solution in the ruling because it makes allowance for the Mill’s capacity to discharge its obligations to the partners, customers, employees and creditors, as well as tax obligations, while also maintain continuous operations.