Russian news outlet Kommersant reports that a court of arbitration in the Yaroslavl region of Russia has begun insolvency proceedings against local company Yaroslavl Shipyard (YaSZ).
Court documents stated that the proceedings against YaSZ were filed after the company incurred debt totalling RUB14.4 million (US$190,000) from its failure to pay Nakhodka Ship Repair Yard (NSRY) for repairs done on the Russian Navy Project 23470 icebreaking tug Kapitan Sergeev.
The company has had some of its accounts frozen due to failure to pay taxes, and since late last year, it has reportedly been experiencing difficulty in paying the salaries of many of its employees, resulting in forced leaves and work being halted at some on-site facilities.