AK47 maker bites the bankruptcy bullet

[Gunreference1]

AK47 maker bites the bankruptcy bullet

Published: 06 April, 2012, 18:51

The company that makes the world famous Kalashnikov assault rifle has declared bankruptcy. Even though hundreds of thousands of the guns have been sold world wide the company’s finances have been dire.

A court has given the green light to the company being wound up following a lawsuit by a creditor owed $30,000. The Kalashnikov maker is now in receivership, and an administrator has been appointed by the court.

To read the rest of the story click the link below.

http://rt.com/business/news/kalashni...-bankcupt-462/

Steve

[stinker]

Is that "THE" Izhmash factory or something else?

[Penguin]

How strange a gun maker going broke while we are in the middle of another gun run in this country. I think there problem was an inablity to sell guns here in the US.

[TomO]

I wouldn't worry about it too much; Izhmash has been pushed in the direction of bankrupcy on and off for the last several years. Any time a creditor doesn't get paid they try to force the issue by pushing them to the court. Up till now the courts have not considered them anywhere near insolvent.
I'm willing to bet the parent company is just letting this happen (that is IF the court really HAS found them to be insolvent at this time) so they can reorganize under a better footing. Izhmash isn't going anywhere....they will just change the name a little bit...add a word or two or something.

[Full Otto]

They should start up a plant over here. No more import BS

[O.S.O.K.]

Production in a command economy is an entirely different thing than in a capitalistic economy - they are suffering from a lack of cash flow control.

This is the same basic reason that so many outwardly 'successful' restaurants go under. They seem to be blowing and going but the owners don't know how to handle the money properly and let things get out of control.

Cash flow.

[mrkalashnikov]

Does this mean Uncle Misha is going to be out on the streets?

[Gunreference1]

Kalashnikov Rifle Maker Goes Belly-Up; AK12 Is a “Bluff”

Posted on April 10, 2012 by Robert Farago

Pravda reports that the Court of Arbitration of the Udmurtia Republic has declared JSC Izhmash—manufacturers of the legendary Kalishnikov rifle—bankrupt. Old news? Apparently so. “In 2011, JSC Izhmash and Russian Technologies state-run corporation developed the concept for restructurization [ness]. A new company called Scientific and Industrial Association Izhmash (NPO Izhmash), a branch company of Russian Technologies, appeared as a result of the work. All contractual obligations and personnel were re-registered with the new company. The basic activities will be delivered to NPO Izhmash before the end of the first quarter of 2012.” Yes, well, just because some papers have been shuffled doesn’t mean that Izhmash is alive and well and living in Udmurtiastan. As Chevy Chase might have said, Izhmash is still dead. And looking deaderer by the day . . .

To read the rest of the story click the link below.

http://www.thetruthaboutguns.com/201...2-was-a-bluff/

Steve

[FunkyPertwee]

One day, no one will make a real AK.

What Roman imagined that one day the Gladius could only be seen in the form of a cheap reproduction?

[Gunreference1]

Izhmash, Manufacturer of AK Rifles, Declared Bankrupt, Russia Taking Over

04.23.2012
Story by: Max Slowik

The Izhmash Machinebuilding Plant, perhaps best known for the AK-47 rifle, has been declared bankrupt. Starting last August Izhmash underwent court-appointed bankruptcy arbitration but was unable to bring their costs down enough to stop wiping out their profits.

Which is amazing when you consider that the sale of Izhmash sporting firearms has quadrupled in the last year alone, to the tune of more than $105 million, or 3.13 billion rubles. Demand for their sporting rifles and shotguns has never been higher, particularly in the U.S., but they're in-between military contracts, which is what the plant was designed to handle.

To read the rest of the story click the link below.

http://www.guns.com/izhmash-declared...upcy-7252.html

Steve