Russia, Renault Agree On Terms of Avtovaz Restructuring

Renault SA and other shareholders of troubled Russian car manufacturer Avtovaz said Friday that they have agreed on an overhaul of the company that includes debt restructuring and a new product plan, MarketWatch reported. The memorandum of understanding between the shareholders was signed in Paris on Friday at a ceremony attended by Russian Prime Minister Vladimir Putin, whose presence underscored the political importance of Avtovaz. The shareholders of Avtovaz are the state-controlled corporation Russian Technologies, the Russian bank Troika Dialog and France's Renault. Under the plan, the Russian government will increase its financial support for Avtovaz from 25 billion rubles to 75 billion rubles ($2.56 billion) to reimburse bank debt and cover the company's short-term cash needs. Read more.