Alexander Velovich/MOSCOW
A re-organisation plan agreed for Russia's cash-strapped engine manufacturer Perm Motors will see Pratt & Whitney take a 25% stake in a new joint-stock company set up to concentrate on PS-90 production.
Under the deal, a new company, the Perm Motorbuilding Plant (PMZ),will take over about 70%of the firm's assets. Perm Motors will continue to hold 49%of the new venture, although the state authorities will stay in control of the company as a guarantee against debt repayments.
P&W has long been working to develop a relationship with Perm. The remaining 75% will be controlled by the Interros financial group on behalf of the Uneximbank, one of Russia's leading commercial banks.
Interros already holds 27.8% of the company and was party to the restructuring agreement worked out with the Perm Motors management and the regional authorities in response to the company's increasing financial difficulties.
Debts have mounted to 800 billion roubles ($135 million), and the company owes 58 million roubles in salary payments to its employees. Engine deliveries, however, remain at a trickle. Perm is expected to produce no more than eight of its PS-90A engines this year, having delivered just six in 1996.
Under the new deal, Perm will be able to delay federal and regional tax payments for ten years, while Uneximbank has pledged a loan of 88 billion roubles to help pay employees' salaries.
PMZ will concentrate on production of the PS-90 engine, which is expected to be the long-awaited PS-90P version now being developed with P&W.
Source: Flight International
