Russia's Kurganmashzavod filing for bankruptcy

YEKATERINBURG, Russia, Feb. 10 (UPI) -- Russian infantry fighting vehicle maker Kurganmashzavod has filed a bankruptcy petition with the Kurgan Arbitration Court.

Kurganmashzavod, also referred to as KMZ, is Russia's only enterprise that manufactures infantry fighting vehicles. Russian state-owned news outlet Tass reports KMZ struck an earlier agreement with MTE Group to pay two stages of $515,000 of its total debt on lease payments in addition to a $23,800 cancellation penalty.

"That's why MTE Group demands that the plant be recognized bankrupt and that a bankruptcy commissioner be appointed," the court said.

The bankruptcy petition has not yet been accepted for hearing.

The company was given a long-term contract by the Russian Defense Ministry to provide over 200 BMP-3 infantry fighting vehicles to the Russian Army from 2015 to 2017. Around 120 of the vehicles are currently in service with the Russian Army, with 900 set aside for exports to the United Arab Emirates, Indonesia, Cyprus, Kuwait and South Korea.

Planned upgrades for the vehicle include new ammunition capabilities, including new 100mm laser-guided projectiles, 100mm high-explosive fragmentation rounds, and 30mm armor-piercing discarding sabot rounds.