Vladimir Putin approved the bailout plan for Sukhoi Civil Aircraft Company (SCAC), Kommersant reports.

A part of SCAC’s debt owed to Vnesheconombank ($600 million) will be paid off by means of secondary offering performed by the major shareholder of SCAC – Sukhoi Holding Company. A subsidy obtained by means of selling the VEB’s 5%-share in EADS (Airbus) will also be allocated for support of SCAC.  

Vladimir Putin approved the plan for financial support of the manufacturer last week. The president approved the plan assuming conversion of a part of SCAC’s debt ($600 million) owed to VEB into shares of its major shareholder - Sukhoi Holding Company since it is a break-even operation for the bank. The president also agreed to provide additional subsidy for SCAC. These funds will be raised by selling 5% of EADS shares (parent company of Airbus S.A.S.) sold to VEB by VTB in 2007.  

The banks agreed not to claim an early repayment of SCAC’s debts in 2013, but the manufacturer must improve its financial situation by 2014. At present the SCAC‘s debt burden is $2,1 billion (including $300 million owed to related parties). In accordance with the project’s business plan, it will reach the breakeven point in 2015, when the revenues will exceed $1,5 billion. The company’s revenues should reach $2 billion in 2018.