OREANDA-NEWS. November 25, 2009. The board of directors of the United Aircraft Corporation (UAC) assembled in the House of Government of the Russian Federation. Sergei Ivanov, deputy chairman of the Russian government, also acting chairman of the UAC board of directors, presided at this assembly. The agenda included the following issues: stabilization of the financial and economic situation at UAC and its member enterprises, re-configuration of the corporate structure and changes to the organizational structure of the corporation, reported the press-centre of UAC.

The directors exchanged their views on the current situation with debt burden amassed by UAC member enterprises and suggested measures aimed at improving financial stability of UAC members and easing of the debt burden in 2009-2011. They proposed ways of more efficient use of available financial resources, paying-off and restructuring financial obligations (including by means of selling non-related businesses) and using additional financial support coming from the government so as to pay off outstanding, “problematic” debts.

Various measures aimed at easing UAC’s debt burden are being considered by the Russian government, following the decisions made during the working session of the Russian government on 18 August 2009. Parameters of additional governmental aid and related mechanisms are agreed on in general between UAC and various bodies of the Russian government. All necessary approvals are expected by the year-end.

The board of directors instructed executives of the corporation to pay more attention to financial activities of UAC member enterprises, especially them taking new banking credits and using other ways of access to borrowed capital. The executives were also instructed to perform a special audit in the first quarter of 2010. The purpose of the audit will be to assess “problematic” debts amassed by the member enterprises and estimate their real value.

UAC president Alexey Fedorov briefed the board of directors on recent steps made in 2009 relating to UAC corporate structure. Additional emission of shares enabled UAC to offer these shares to shareholders of UAC member enterprises in exchange for their stakes in those enterprises. Many of the shareholders accepted the offer. As a result, the number of UAC shareholders has risen to some 800. This is a good indicator of the fact that the corporation is now a true public company exposed to the open market. Corporate structure changes in 2010-2012 will focus on creating three integrated structures (business units): UAC – Combat Airplanes, UAC – Commercial Airplanes and UAC – Special Airplanes. Steps will be taken to encourage private shareholders to consolidate their stakes in UAC.

The board of directors has approved of changes in the top management of the corporation, to cater for changing corporate structure. Abolished are the positions of vice-president for civil aviation, vice-president for strategic and special aviation and vice-president for the MS-21 project. Simultaneously, new posts are introduced: senior vice-president for commercial aviation and senior vice-president for strategic and special aviation. Oleg Demchenko, acting President and Chairman of the executive board at Irkut Corporation, is nominated for the former, and Alexander Bobryshev, President of Tupolev, for the latter. Mikhail Pogosyan, UAC first vice-president for program coordination (also acting general director – general designer at Sukhoi and RSK MiG), will lead UAC – Combat Airplanes.

The board of directors has formulated terms on which Aviacor – Aviation Plant (based in Samara) may be included into UAC group of companies. Aviacor would focus on series production of the Antonov An-140 regional turboprop, and manufacture of parts to the An-148 regional jet and Ilyushin Il-112 tactical airlifter. In future, Aviacor may accommodate a manufacturing center producing parts and subassemblies for these types of aircraft. Besides, the plant may take part in overhaul and repair activities involving aircraft produced by UAC.

The board of directors addressed the Beriev Be-200 amphibian aircraft program. It approved of allocation of Rouble 2 billion to this program. The money will be raised during additional emission of UAC shares in favor of the Russian government. The money will be spent on setting up a Be-200 assembly line at the Taganrog Aviation Scientific Technical Complex named after Beriev, as well as production preparations necessary to fulfill contract obligations on delivery of Be-200s to Russia’s Ministry for Emergencies and other customers.

The board of Directors addressed the project of the National Aviation Center (NAC) in the town of Zhukovsky. This project is being put together by UAC, Moscow City Government and Rostechnologii (Russian Technologies) state corporation. The board of directors has instructed UAC executives to carry on (in frame of their responsibilities) with the project, and prepare a documentation package on first-phase NAC objects.

The board of directors issued its approval to main parameters of the UAC emission of shares that shall take place in December 2009. The shares are being issued for a closed subscription: 23 billion shares in favor of the Russian government and 20 billion shares in favor of the State Corporation “Bank of Development and Foreign Economic activities” (Vnesheconombank, VEB).

The board of directors approved of the choice, made on 20 August 2009, - that of an auditor to perform obligatory audit of UAC financial activities in 2009. HLB Vneshaudit company won the selection. UAC shareholders are advised to approve of it. The board of directors made decision to held UAC shareholders meeting (extraordinary) on 11 January 2010.

The board of directors has elected the following members in UAC executive board:

Alexey Fedorov, UAC president and chairman of executive board;

Alexander Bobryshev, Tupolev president;

Oleg Demchenko, UAC vice-president for MS-21 project, Irkut president and chairman of executive board;

Leonid Komm, UAC vice-president for program control;

Victor Livanov, UAC vice-president for transport aviation, Ilyushin general director – general designer;

Mikhail Pogosyan, first vice-president for program coordination, Sukhoi general director, MiG general director – general designer;

Vasily Prutkovsky, UAC vice-president for corporate development and control;

Andrei Slivchenko, UAC vice-president for corporate finance – director of department for investments, economics and finance;

Alexander Tulyakov, UAC vice-president for administrative issues;

Alexander Roubtsov, Ilyushin Finance general director.