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. Last Updated: 07/27/2016

Moskvich Reports $526M Loss for '96

The ailing maker of Russia's Moskvich automobile announced Monday it lost more than 3 trillion rubles ($526 million) in 1996, much of it because of the company's huge debts.

It was not clear whether the loss was better or worse than in 1995, as the company, known formally as AZLK, rarely reports financial results.

The company's main plant in Moscow was mostly idle in 1996, and produced only 2,500 autos. In a statement to Itar-Tass, the company said about half of its losses were incurred during uncompleted construction at the plant. The company also owed about 80 billion rubles in back wages by the end of the year, it said.

AZLK is retooling its assembly lines to produce a version of Renault's Megane and a new sedan, to be called the Prince Vladimir.

The government tried to force the company into bankruptcy proceedings earlier this year. Moscow city authorities came to its rescue and are acting as guarantors of the company's debts.