The head of state corporation Rostek, Sergei Chemezov, asked the prime minister and the head of the VEB's advisory board, Dmitry Medvedev, not to allow the production of the Tractor Plants concern (KTZ) to be stopped due to a revaluation of its debt to VEB. This is stated in Chemezov's letter to the premier on July 23 (RBC has it). The authenticity of the document was confirmed by RBC, a source close to the government.
In Chemezov's opinion, VEB's plans to abandon the previously negotiated debt settlement scheme with Rostekh may lead to the disruption of the state defense order, as well as the "emergence of social tensions in the regions" where the concern's enterprises are present, Rostekha's head emphasizes.
Now the total debts of KTZ exceed 100 billion rubles, of which more than 80 billion rubles. - Debt to VEB, follows from the letter. In order to "preserve the production potential of key KTZ enterprises", it was decided to attract a private investor - the Transport Components group associated with Transmashholding. Together with this, VEB promised to cede the rights of demand to the KTZ enterprises related to the Rostekh structure - "Foundry". This company is owned by the holding company Rostekha "High-Precision Complexes" (33.3%) and "Transport Components" (66.6%). In return, VEB would receive two simple interest-free bills secured by the guarantee of the structures of Rostekh and Transmashholding, Chemezov writes.
According to VEB estimates, the market value of the assigned assets is 5.4 billion rubles, Chemezov recalls. "In addition to paying the assigned rights to the requirements of Rostekhom and Holding Transport Components, currently there is a non-return financing of military and civil divisions in the amount of about 7.5 billion rubles and 6 billion rubles, respectively," added the head of the state corporation. In addition, Rosoboronexport will provide repayable financing to KTZ in the amount of 5.1 billion rubles, Chemezov underscores.
But at the meeting of Vnesheconombank's working group, decisions were made to change the previously agreed scheme of the transaction, as well as to conduct a re-evaluation of the market value of the assigned rights of claims, the head of Rosteka writes. This will shift the timing of the transaction, Chemezov said.
"Even a small delay in the implementation of the transaction will lead to the transition of enterprises to bankruptcy proceedings and the loss of control over operational activities by both Vnesheconombank and Rostekha, a complete halt in production," the head of the state corporation said. In addition, in the absence of an agreed position, Rostekh and the private investor will suspend the non-return financing of KTZ enterprises, Chemezov warns.
The decision on the KTP transaction was made by VEB in the spring of 2018 until the appointment of former vice-premier Igor Shuvalov as head of the state corporation.
What is KTZ
The founder of the concern "Tractor Plants" - Mikhail Bolotin. In 1996, he acquired the Cheboksary Industrial Tractor Plant (Promtractor). It was the first machine-building asset of the group.
The company actively bought existing Russian and foreign engineering enterprises for borrowed money, the funds provided, including VEB. Ten years later, the group included more than a dozen plants: Cheboksary Aggregate Plant, Cheboksary Plant of Power Units, Kurganmashzavod, Promtractor, Combine Company, Lipetsk Tractor, Danish company Silvatek and others. In 2009, "Tractor Plants" conducted an IPO on the Frankfurt Stock Exchange, the first of Russian companies after the economic crisis of 2008.
Financial problems for KTZ began in 2010 due to weak demand for products, as a result, the company conducted delisting. Debts of the concern as of 2018 were estimated at 100 billion rubles., Of which about 84 billion rubles. accounted for by VEB. Shareholders of the company (together with Bolotin's owner KTZ was Albert Bakov with 20% stake) tried to negotiate with creditors. But VEB initiated the bankruptcy procedure for a number of enterprises of the concern. As a result, the management of KTZ went to Rostekh, and the state corporation attracted the investor group, Transport Components, to develop the concern.
"Understand and report"
On July 24, Dmitry Medvedev sent a resolution to Chemezov's letter (available to RBC) to the Deputy Prime Minister Maxim Akimov and VEB head Igor Shuvalov as follows: "Understand and report the proposals, bearing in mind the need to prevent the stoppage of production."
In "Rosteha" the fact of sending the letter declined to comment. At the same time, the state corporations noted that Rostech is not the owner of the concern, private shareholders still act as shareholders. "Understanding the special position of the concern in the defense industry system and its city-forming role, we propose a scenario for the recovery of KTZ, not related to the bankruptcy of strategically important enterprises, with the involvement of a private investor - Transport Components," Rostekh said. The state corporation was assured that during the transition period Rostek and the private investor are ready to provide "significant financing" to KTZ in irretrievable mode in order to support the work of the concern and the fulfillment of the contracts of the state defense order.
The press service of VEB left Chemezov's letter without comment. A source familiar with the course of the talks told RBC that "the common task of both Rostekha and VEB is" the preservation of the enterprise and its collective. "