Mahileu "Kozhevnik" declared bankrupt

The Economic Court of the Mahileu region recognized the OAO "Kozhevnik" a bankrupt and opened liquidation proceedings.

"The bankruptcy is connected with huge credits, worn-out equipment, absence of circulating assets, as well as the situation with currency exchange rates. Based on the equipment we do not produce goods of required quality", the bankruptcy trustee of "Kozhevnik" Siarhei Kryvanos told BelaPAN.

According to him, the accounts payable of the OAO are about Br30 billion. The manager is convinced a criminal case of the former Director Halina Vishniavetskaya, convicted last year on charges with embezzlement, affected the deterioration of the economic situation at the plant. "She was charged with embezzlement of one and a half billion rubles. We would have used this money now," the bankruptcy trustee said.

Kryvanosau says the enterprise is still operating, but in the next couple of months it will be stopped. "People are warned that we are in the process of liquidation. Someone will be fired because of reduction, someone – because of liquidation, the rest– because of the expiration of the contract", he said.

OAO "Kozhevnik" was created in May 1997 by transformation of a rental company "Mahileu tanning plant". The enterprise was founded in 1930 and is the oldest tanning plant in Belarus. Initially, the plant was focused on the production of Russia calf, harness leather goods. Over the years the plant was the only manufacturer of Russia calf in Belarus. Rawhide, harness leather, welts for footwear are produced here.

One hundred and eighty one people were an average number of workers on third quarter of 2014.