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. Last Updated: 07/27/2016

Kalashnikov Maker Faces Bankruptcy

Izhmash, the biggest maker of Kalashnikov assault rifles, faces bankruptcy over unpaid debts.

The arbitration court in the region of Udmurtia, where Izhmash is based, will consider a bankruptcy lawsuit filed by creditor Gremikha on Oct. 7, the court said on its web site Monday. Izhmash owes Gremikha more than 400 million rubles ($13 million), according to Izhmash’s web site.

Izhmash, where Mikhail Kalashnikov, 89, invented the AK-47 in the 1940s, is a unit of Russian Technologies, a state holding company with mining, arms and automotive assets. “A special commission at Russian Technologies is currently reviewing the financial situation of Izhmash and will issue a press release when its work is finished,” Russian Technologies spokesman Valery Kartavtsev said by phone in Moscow, declining to elaborate. A spokesman for Izhmash declined to comment.