Creditors look to bankrupt Leningrad plant

30 September 1998

Leningrad region’s bankruptcy office confirmed that proceedings have been opened against the Leningrad Nuclear Power Plant, raising fears that this could trigger a spate of similar lawsuits against other nuclear power plants across Russia. The plant owes $245 million to all of its creditors.

Rosvooruzheniye KBR, a company that holds $317,000 in veksels, or promissory notes, issued by the plant, filed a suit with the St Petersburg State Arbitration Court to force the plant into bankruptcy. Russian bankruptcy law allows the courts to seize control of organisations that do not pay their obligations. The plant itself is owed some $241 million by its six biggest debtors, which include the St Petersburg power company Lenenergo and the power companies supplying the cities of Kaliningrad, Pskov, Vladimir, Yaroslav and Novgorod. In August, the Leningrad plant filed its own court cases against the cities of Pskov and Kaliningrad over debts.

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