THE SUBSIDIARY OF THE GM AUTOMAKER IN RUSSIA IS THREATENED WITH BANKRUPTCY

The Moscow Arbitration Court has begun consideration of the bankruptcy claim of the GM Auto company, established by the carmaker General Motors. The initiator of the process was the company "Avtoliga-West". The Moscow Arbitration Court has scheduled a review of the validity of the insolvency application for September 19.

The plaintiff is one of the structures of the Nizhny Novgorod holding "Avtoliga", which manages the work of 22 dealerships. The beneficiaries of the business are Alexey Denisov and Nikolai Kireev. Previously, the company has already filed many lawsuits against the "daughter" of General Motors due to violation of contractual obligations for the supply of cars to Russia. The total amount of claims for them is 59 million.

In June, the arbitration concluded consideration of the claim in the amount of 5.5 million. The dealer demanded this amount from the company as compensation for losses related to the rental of seats in the Nizhny Novgorod car dealership.

In April 2022, General Motors informed about the complete termination of business operations in the Russian Federation and further cooperation with Russian car dealers. Despite this, Avtoliga continued to pay rent for places where GM cars previously imported into the country were exhibited until November 2022.

It is known that the subsidiary of the automaker in Russia is 99.9% owned by GM Mobility Europe GmbH (Germany). Until 2016, the company was located in St. Petersburg. There she managed a factory that produced Chevrolet, Opel and Cadillac passenger cars.

Subsequently, the plant was closed and the company began importing finished cars and spare parts to the country. In 2021, the company recorded revenue growth of 83%. The organization ended the year with a profit of 3.4 billion with revenue of 19.4 billion.

Experts suggest that the bankruptcy lawsuit against the company was caused by the inability to receive from the defendant the financial means already won by the plaintiff in the courts. Currently, some bank accounts of GM Auto are frozen by the decision of the tax authorities.