Russia's AvtoVAZ says overstocked with 90,000 unsold cars

MOSCOW, March 17 (RIA Novosti) - Russia's AvtoVAZ has about 90,000 unsold Lada cars sitting at warehouses and dealerships, the automaker's president said on Tuesday.

Boris Alyoshin also said the company's debt totaled 44 billion rubles ($1.3 billion), some of which needed to be restructured.

He said the company was still seeking 26 billion rules ($747 million) in state support but could offer a new share issue as an alternative.

Alyoshin said the issues would be discussed in two weeks at a governmental commission meeting.

He added that AvtoVAZ could soon obtain a loan from a syndicate of Russian and French banks on "fairly attractive terms."

He did not specify the amount of the loan.

He also said AvtoVAZ would establish five subsidiaries as part of the company's reorganization and would, among other things, employ redundant labor.