Russian maker of AK-47 faces bankruptcy
Posted: Wed Sep 23, 2009 8:44 am
Market saturation, economic climate, competition, mismanagement?
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Russian maker of AK-47 faces bankruptcy
Date: 23 September 2009
By Matthew Day
THE Russian producer of the Kalashnikov assault rifle, the world's most ubiquitous firearm, is facing bankruptcy owing to falling orders.
A court in the Russian region of Udmurtiya has accepted a bankruptcy petition filed against Izhmash, the country's biggest arms manufacturer and the maker of the rifle.
The iconic weapon has been produced in the millions and adopted by 106 armed forces across the globe, but production in its home land is now in doubt.
Another Russian company, Gremikha, claims that the AK's maker owes them £8 million, and has now gone to court to get its money.
Arms sales have crashed and Izhmash has frozen production of the AK-47 at its Molot factory due to a lack of orders from the state. But analysts believe that bankruptcy could allow the company to be restructured and then restarted without its debt burden.
Izhmash has made no comment over its financial future.
http://news.scotsman.com/world/Russian- ... 5670104.jp" onclick="window.open(this.href);return false;
Russian maker of AK-47 faces bankruptcy
Date: 23 September 2009
By Matthew Day
THE Russian producer of the Kalashnikov assault rifle, the world's most ubiquitous firearm, is facing bankruptcy owing to falling orders.
A court in the Russian region of Udmurtiya has accepted a bankruptcy petition filed against Izhmash, the country's biggest arms manufacturer and the maker of the rifle.
The iconic weapon has been produced in the millions and adopted by 106 armed forces across the globe, but production in its home land is now in doubt.
Another Russian company, Gremikha, claims that the AK's maker owes them £8 million, and has now gone to court to get its money.
Arms sales have crashed and Izhmash has frozen production of the AK-47 at its Molot factory due to a lack of orders from the state. But analysts believe that bankruptcy could allow the company to be restructured and then restarted without its debt burden.
Izhmash has made no comment over its financial future.
