YEREVAN (ARKA)—The Armenian government on Monday approved a decision by the shareholders of ArmenFilm Studio to re-register the company and return its shares to the state.
Arman Sahakyan, head of a government department in charge of state property, said an agreement between the Armenian government and Armenia Studios—the owner of ArmenFilm—will be dissolved. The government will pay 345 million dram for 100% of the studio’s shares. The shareholders will yield 5 million drams as payable compensation from the studio to the government.
According to earlier reports, the reason for the return of the shares is the failure of the studio’s owners, Gerard Cafesjian and Bagrat Sargsyan, American businessmen of Armenian origin, to fulfill their contractual obligations. Specifically, they made no investments in the last ten years to upgrade the studio, build film sets, and furnish it with modern equipment.