Board of Directors of Kazancompressormash JSC approves a deal for 15 billion rubles

Kazancompressormash has changed the terms of the contract with the Moscow Credit Bank

The board of directors of Kazancompressormash JSC approved a major transaction by a majority vote of shareholders-owners of voting shares. The Kazan enterprise from the HMS Group intends to conclude an additional agreement to the contract with the Moscow Credit Bank dated September 13, 2022. According to the document, the limit of bank guarantees will be increased to 15 billion rubles.

The warranty period is from September 13, 2022 to September 13, 2025 inclusive. The validity period of each warranty will also change — no more than 72 months. At the same time, guarantees with a validity period of more than 40 months will be issued subject to prior agreement with the bank, if the total amount of all guarantees under this agreement is more than 2 billion rubles.

The issue was the eighth item on the agenda of the meeting of the company's board of directors, and another transaction was approved the ninth. Kazancompressormash will conclude an addendum to the guarantee agreement with the same bank and from the same date — September 13, 2022. The contract was concluded to ensure the fulfillment of obligations of another company of HMS Group — Gidromashservis JSC under an agreement on the issuance of guarantees.

Guarantee agreement until 2034

Amendments have been made to the guarantee agreement by an additional agreement. According to them, the guarantor, that is, Kazancompressormash, undertakes jointly with Gidromashservis JSC to be fully responsible to the bank for the fulfillment of the client's obligations under the guarantee agreement. The amount of the guarantor's total liability is 2,065 billion rubles. The agreement will be valid until September 13, 2034.

As already reported by Realnoe Vremya, the net assets of Kazancompressormash JSC last year amounted to 4,8 billion rubles against 3,3 billion rubles a year earlier (+44,5%), Realnoe Vremya found out.

In November last year, the structure of HMS Group — Gidromashservis JSC launched the procedure of compulsory repurchase of ordinary shares of Kazancompressormash JSC. The authorised capital of the Kazan enterprise was divided into 351,6 thousand shares, of which 336,532 thousand were ordinary shares.

In May, our publication also reported that Kazan's former partner, the German electrotechnical concern Siemens AG, which announced its withdrawal from Russia a year ago, is trying to settle a debt dispute with Kazancompressormash JSC. Its Moscow subsidiary — Neftegaz and Energetika presented new requirements for almost 2 million euros to the Kazan enterprise as part of a deal to supply a gas turbine unit of the SGT-700 type with a capacity of 32,8 MW. Many Kazan gas pumping units (GPA) were equipped with such turbines for the development of deposits in Yamal.