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. Last Updated: 07/27/2016

Holding's 6 Plants File for Bankruptcy

Estar Holding, a Russian stainless steel producer founded by State Duma Deputy Vadim Varshavsky, said six of its nine steel plants filed for bankruptcy after debt grew to $1 billion, a spokeswoman said Monday.

The mills filed for bankruptcy protection at the end of last month, Estar spokeswoman Yekaterina Videman said. The filings will allow the company to begin negotiating with its lenders and restart operations at the six plants in July, Videman said.

"It seems to be the first case when relatively big steel plants have gone bankrupt in Russia since prices tumbled last autumn," said Slava Smolyaninov, an analyst with IFK Metropol.

The six plants are: Nytva, Novosibirsky Metals Plant, Zlatoust Metals Plant, Gurievsky Metals Plant, Engelsk Pipe Plant and Volgograd Small-Diameter Pipes Plant.

Closely held Estar produced 2.7 million tons of steel and steel products last year.