No Cooperation between A-V & SRT Until Debts Restructured

The previously discussed merger or cooperation between Amtel-Vredestein and Sibur Russian Tyres has, according to a source within Sibur Russian Tyres, been put on hold until the former company’s debts have been restructured. Reuters reported this development on March 24, four days after Amtel-Vredestein announced what it calls a “restructuring proposal for its debt obligations.”

On March 20 Amtel-Vredestein said that, further to the announcement the company made on January 29, the company’s Russian subsidiary will reorganise its current and long-term debt obligations with the majority of its current lenders. Talks with lending banks are said to be ongoing.

In spite of this, the source from Sibur Russian Tyres reportedly told Reuters that Amtel “must restructure or reduce its debt” and that before any cooperation takes place “there must be some kind of progress.” According to Reuters, Sibur Russian Tyres’ official spokesman Rashid Nuryeyev declined to comment.