Dear colleagues, partners and KrAZ fans! Due to unreliable  information about proceedings with Oschadbank that appeared in print as quoted by the newspaper “Vesti” we have to renew the subject. In April of this year  “AutoKrAZ” published detailed clarification of facts on the matter, by this time no significant changes occurred.

As we informed before on October 9, 2008, Holding Company “AutoKrAZ” signed Line of Credit Agreement with Oschadbank. The credit line funds were used to replenish current assets: to purchase materials, components, to pay for utilities, salaries and taxes.

In spite of the 2008 economic crisis, “AutoKrAZ” complied with credit agreement and paid interests on the loan and reimbursed the credit in accordance with approved schedules within 2008-2009.   

In 2010 the company failed to fulfill its obligations for reasons beyond control, including sharp decrease in demand for KrAZ trucks and spare parts because of ongoing crisis in Ukraine and CIS countries and failure of the government to refund VAT. As the result, the bank petitioned Kiev Economic Court to recover debts owed by HC “AutoKrAZ” from PJSC “AutoKrAZ” and its guarantors.

Today PJSC “AutoKrAZ” and Oschadbank try to settle dispute both out of court and in court and find a mutually acceptable solution.

Despite of the fact that the court of first instance found for the claimant, under applicable laws of Ukraine it is not effective as “AutoKrAZ” appeals against court decision. It is premature to speak about sales of collateralized property as it is governed by the applicable laws of Ukraine. For the same reason we consider that statements about exact number of shares and other collateralized property are wrong and need correction.   

PJSC “AutoKrAZ” asks mass media to be objective in covering events and contact “AutoKrAZ” for comments and detailed information. Incorrect conclusions based on unreliable information and splash headlines injure reputation of the company.