YEREVAN (Noyan Tapan)–At its meeting Monday the Yeraz public corporation’s Board of Creditors discussed a new program of financial recovery developed by Chairman of the Board and Acting Director Hovsep Seferian.
The Yeraz automobile plant declared bankruptcy in 1997 after the recovery program approved by the Board of Directors failed. "Ardshinbank"–the Pension Fund and the government are the three biggest creditors of the plant.
While presenting the new program H. Seferian said that he will work to stop "accumulating new debts–and gradually cover the previous ones". According to him–the program is different from the first one because great importance is attached to both the production of new cars and the mastering of new types of production for the purpose of leading the enterprise out of bankruptcy. Not only the plant manufacture standard automobiles but will also produce military cars–harvesters–boats and mobile kitchens.
The creditors admitted that some points of the new program does concern them–because according to them the program does not contain the mechanisms needed in order to cover debts. They suggested new plans for the program and also the establishment of a commission which would include independent experts representing the creditors’ interests and Yeraz Board members. The commission is to value the property of the plant and control the management’s activities. The presentation of the program–which will be developed after the revaluation of the property–is to be held on September 6 1999.