Source: the head of “AVTOVAZ” Bo Andersson has resigned from 8 April

MOSCOW, March 11. The President of the Russian company “AVTOVAZ” Bo Andersson resigns from April 8, April 7, his last working day. Said a source familiar with plans of the enterprise.

By the end of 2015 AVTOVAZ loss under IFRS at RUB 74 billion and a negative cash flow, and stated in the statements that without the support of shareholders may be unable to service debt and continue operations. Chapter GC “rostech” (one of the shareholders of the company), Sergei Chemezov, has delivered today to the head of “AVTOVAZ” Bo Andersson blamed for this loss, citing the fact that the Manager did not use the resource of the Russian suppliers, but I went the easy way – signed contracts with suppliers of its partner companies – Renault and Nissan.

After the report of “AVTOVAZ” losses “rostech” and Renault stated that discussing ways of restructuring the company’s debt. As a possible scenario includes recapitalization by depositing additional funds in the company’s share capital and conversion of debt.

In addition, the shareholders intend to change the General Director – the Board of Directors at which this can occur is scheduled on March 15. Previously, the newspaper “Vedomosti” with reference to its sources wrote that the new leader may be a foreigner, for example a Manager from Renault.

The controlling stake of AVTOVAZ is owned by Renault-Nissan Alliance, block-package – GC “rostec”. These shareholders control the company through Alliance Rostec Auto BV.