Saturday, 21 April 2012

Kalashnikov rifle maker declared bankrupt

JSC Izhmash, the maker of the legendary Kalashnikov assault rifles, was declared bankrupt in accordance with the award of the Court of Arbitration of the Udmurtia Republic. Bankruptcy administration was introduced at the company on Friday, April 7. The introduction of the bankruptcy administration will give the company an opportunity to preserve its property and brand. Maksim Kuzyuk, the General Director of Izhmash, believes that all enforcement proceedings will be suspended within the scope of the procedure. In addition, the arrests of the company's accounts will be lifted. Therefore, the company will be able to make settlements with counteragents and execute its current obligations on time (tax payments, contract payments, salary payments). In 2011, JSC Izhmash and Russian Technologies state-run corporation developed the concept for restructurization. A new company called Scientific and Industrial Association Izhmash (NPO Izhmash), a branch company of Russian Technologies, appeared as a result of the work. All contractual obligations and personnel were re-registered with the new company. The basic activities will be delivered to NPO Izhmash before the end of the first quarter of 2012. Russian news agencies said in January that the defense ministry was not planning any orders with Izhmash within the scope of the state defense order for 2012. It was also said that the new AK-12 assault rifle was nothing more but a bluff. However, Izhmash officials said that the AK-12 was designed for export purposes to meet all modern requirements to small arms. An order from the state would give the company an opportunity to launch the serial production of the AK-12 for the Russian Armed Forces. The state tests of the new rifle may begin at the end of 2012 or in the beginning of 2013. Russia's Interior Ministry has already evinced great interest in the new product. "Developing a new family of automatic arms is a priority for Izhmash to retrieve the world share of the market," Maksim Kuzyuk, the General Director of the Scientific and Industrial Association said.

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