Update on the Izhmash Bankruptcy

Steve Johnson
by Steve Johnson

Spiegel Online reports:

And now it appears that the financial difficulties facing the weapons manufacturer have reached crisis point: its very existence is threatened. A businessman in Izhevsk has filed a motion to declare Izhmash Arms bankrupt because of outstanding debts of around 8 million rubles (around €180,000 or $265,000). The case has caused a sensation in Russia because for a long time the Russian armaments industry has been one of the only industries considered competitive on an international basis. And Izhmash, which was founded in 1807 by Russia’s royals, is one of the largest firearms manufacturers in Russia.

A debt of $265,000! That would be petty cash to The Freedom Group.

Izhmash has made an official statement. Translated into English using Google (emphasis added):

Official commentary of the situation,
established in connection with the statement OOO Gremikha ”
recognition “Izhevsk machine-building plant” bankrupt

As is known, the Arbitration Court of Udmurtia admissible statement OOO Gremikha “on the recognition bankrupt OAO Izhevsk Machine-Building Plant”, as posted a message on the website of the Supreme Arbitration Court of Russia. Trial was to verify the validity of this statement is scheduled for October 7.

OOO Gremikha “to” Izhevsk machine-building plant “does not apply. This situation has arisen as a consequence of a dispute businesses. Right debt requirements this society was through the chain cessions rights from third parties, the validity of which “Izhevsk machine-building plant” is going to find out by contacting law enforcement authorities.

Note, this is not the first treatment of small company’s creditors in the arbitration bodies, in which, as practice shows, then is not grounds for the organization of the bankruptcy process.

Which occurs in this case, the dispute between economic entities in no way affect the activities of the group companies Izhmash in particular on the work of the major groups of plants and its subsidiaries. Existing obligations under the state defense order and contracts for the supply of special equipment and civilian goods strictly enforced. The company has a long-term orders and plans for the development of production, including in the framework created by the CC Rostekhnologii holding company for the development and manufacture of small arms.

“Izhevsk Machine-Building Plant

Hopefully this means that exports of civilians arms will not be halted.

Many thanks to the anonymous person who emailed me the link.

Steve Johnson
Steve Johnson

I founded TFB in 2007 and over 10 years worked tirelessly, with the help of my team, to build it up into the largest gun blog online. I retired as Editor in Chief in 2017. During my decade at TFB I was fortunate to work with the most amazing talented writers and genuinely good people!

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3 of 6 comments
  • Danny Danny on Oct 01, 2009

    it aint possible they make only 10-20% of all Aks , with China's NORINCO having the lion's share of the AK market.

    • Steve Steve on Oct 01, 2009

      @Danny that may be true but China licenses production from them.

  • Mrw Mrw on Oct 01, 2009

    It doesn't sound like they are 'going under'. The way I read it is one of their debtors forced them into bankruptcy in order to get repaid.