The Russian scrap supplier Volgometallosnab has filed a lawsuit at the Volgograd arbitration court, requesting a decision of bankruptcy against Volgograd-based steel producer Red October Steel Works. The hearing has been set for May 18, 2009.
According to reports, for over three months now Red October Steel Works has owed Volgometallosnab Ruble 37.4 million (approx. $1.14 million) for its scrap deliveries. The debt in question was fixed during the previous related court hearing, held on January 19, 2009.