Story Of Miory Plant Ruined By Lukashenka Continues

The private company has been nationalised and the management arrested.

A hearing on economic insolvency (bankruptcy) of the company "MMPZ-group" is scheduled in the Economic Court of Vitsebsk region for November 11. This is the firm, which used to run an "ideal" plant in Miory district, which was eventually nationalised. Information about the next court hearing in this case appeared on the website of the Supreme Court.

The Economic Court of Vitsebsk region scheduled the hearing on the suit of Belarusbank, which was a creditor of MMPZ-group, for November 11.

MMPZ-group used to own the Miory Metal Rolling Plant. On November 11, the term of liquidation proceedings of this company expires, it was previously extended in September.

In June 2021, shortly before the visit of Aliaksandr Lukashenka to the enterprise in Miory, law enforcers detained its managers, writes Zerkala.

After that, officials started to "save" the enterprise. As a result, in 2022, all the assets and debts of the Miory Metal Rolling Plant were transferred to a new state-owned firm, established by Beltsvetmet. Last August, Aliaksandr Lukashenka announced about the nationalisation of the plant "due to the failure of the private sector to meet their obligations," then the politician was indignant that "an ideal enterprise was turned into a bankrupt".

Last November, the plant in Miory was transferred to the established state enterprise of the Metal Rolling Company, which operates under the Tinergy brand. It is subordinated to Beltsvetmet. The management of the enterprise assures that the plant works successfully in the state hands, with "confidence in the future". However, by the decision of the Council of Ministers, the company does not publish financial accounts.

As for Belarusbank, it was involved in financing the purchase of the main technological equipment. In 2015, the company took a loan to finance the supply of technological equipment from Germany. "Credit agreements totalling €106.2 million were concluded at the expense of resources of the German AKA Ausfuhrkredit-Gesellschaft mbH bank," reported the press service of the bank. Belarusbank raised resources of German banks for this purpose. The plant specified that the loans were taken for 10 years "at an unprecedentedly low interest rate" and without attracting guarantees of the Belarusian government.

On September 11 of this year, they tried to sell the property of MMPZ-group for almost Br1.5 million at an auction, as follows from the data of the Unified State Register of Bankruptcy Information. However, the auction did not take place, as there were no willing buyers. The next auction of the company's property is scheduled for early November.