The plant loses its court battle with New Community over Tu-204 and will have to find a way of repaying $9.3m debt (168 words)

Published: 11/29/2001

There are early reports that the Rostov Arbitrage Court has turned down Aviastar SP's request to have the New Community (NC) lien on a Tu-204 at the plant removed. Aviastar will therefore have to find some means of repaying the debt of $9.3m to the former management, NC, possibly through the auction of Perm powered aircraft number No. 20 to pay the debt. No.20 is understood to be airworthy, having been flown to MAKS in August, but was last reported to have a limited number of seats in a Russian style cabin. Work on other airframes is slowly progressing, with Air Rep expecting the roll out of its aircraft No.32 by the end of December, although considerably more work is reportedly needed on the airframe and the plant is still experiencing its periodic power outages, as a result of unpaid utility bills.

Article ID: 2934