Leading drone manufacturer teeters on the brink of collapse. Creditors want it bankrupt.

• One of Russia's leading manufacturers of civilian and military drones, the Kronstadt company, known for its Orion and Inokhodets drones, has been struggling with financial difficulties for two years.
• Its creditors – mainly subcontractors – filed 40 lawsuits with the courts against subcontractors for payment totalling 626.3 million rubles.
• Their goal is to declare Kronstadt bankrupt.

One of Russia's leading manufacturers of civilian and military drones, the Kronstadt company, known for its Orion and Inokhodets drones , is struggling with serious financial difficulties that have brought it to the brink of bankruptcy, reports the CNews news portal.

According to media reports, a total of 40 lawsuits were filed against Kronstadt, mainly from subcontractors, for payment of debts totaling 626.3 million rubles (approximately $7.8 million).

The largest claims were received from Innovative Technologies and Materials (151.1 million rubles) and the Research Institute of Modern Telecommunications Technologies (220.6 million rubles).

At the same time, in May of this year, the amount of claims against drone manufacturers Orion and Inokhodets reached one billion rubles . Market sources claim that JSC Kronstadt has been struggling for two years.

The main reason for its problems is said to be the departure of a key shareholder of AFK Sistema in 2022, without whom the debt began to grow.

Sanctions, rising component prices, and large government contracts have undermined the manufacturer's financial stability. Nikolai Ryashin, CEO of Rusdronoport, has suggested the company should file for bankruptcy, prompting subcontractors to rush to submit applications.

“Subcontractors who provided services or delivered products without receiving payment are now filing lawsuits en masse to be able to report to the register of creditors for their debts,” Ryashin admitted in an interview with CNews.

He added that in August 2023, Turbodjet Micro tried to declare Kronstadt bankrupt.

“The loss of financial support from AFK Sistema in 2022 drastically limited access to capital and increased debt pressure,” he told CNews, adding that “without his portfolio, the company had to cope with cash shortages on its own.”

Kronstadt did not respond to CNews' request for comment on the matter.