Court initiates proceedings on bankruptcy case of Bogdan Motors automobile company

The Economic Court of Dnipropetrovsk region has filed a bankruptcy case against JSC Automobile Company Bogdan Motors, which unites production assets of Bogdan corporation, the company's press service said on Monday.

According to the court's ruling in the Unified State Register of Court Decisions, the proceedings were initiated on December 23 at the request of Financial Company Finwork LLC (Kyiv), Evhen Shyman from Dnipro was appointed the property manager.

The press service of Bogdan Motors said in a press release that 2020 has become a record-breaking concourse of adverse factors for vehicle manufacturers, including due to a combination of systemic problems in the industry, in the country's economy and due to the global crisis caused by coronavirus (COVID-19) pandemic.

"Mechanical engineering, as expected, has become the 'cinderella' of officials and legislators, since not a single bill to support and develop internal production has been adopted. Internal manufacturers have not gained access to cheap finance, and obtaining loans to fulfill government defense procurement is still a problem. In return, the government is doing everything so that the loans already received are questioned," the company said in the press release.

The company's press service said that for more than a year, the Economic Court of Kyiv has been considering a case on appeal against the innovation agreement concluded between Bogdan Motors and Ukreximbank.

"The prosecutor's office is delaying the consideration of this case, since they have no reasoning, but the negative noise in the air remains," the company said.

Source: www.en.interfax.com.ua