In Belarus, A Legendary Shoe Factory Is Threatened With Bankruptcy

The court ruled on the Neman shoe factory.

Bankruptcy is threatened in Belarus shoe factory "Neman" because of its million debts. The detailed information was published in the Unified State Register of information about bankruptcy.

The economic court of Hrodna voblast held a hearing on the financial solvency of the shoe factory "Neman. The legendary enterprise has been operating in Belarus since 1939 and is known to a wide consumer mainly for children's footwear - for example, popular multicolored sandals.

The factory was in a protective period until June 1, while the temporary manager was assessing the possibility of restoring the solvency of the enterprise in order to avoid bankruptcy.

At the end, the court decided to launch bankruptcy or economic insolvency proceedings. Now the factory needs to reach agreements with creditors to start the rehabilitation process. If the financial situation of the factory is not recovered, it will be liquidated.

The factory's debts are increasing from month to month. According to official data, in April the debt of the enterprise amounted to 4.26 million rubles, and in May it has already reached 5.6 million rubles. It is noted that the company has quite a lot of assets totaling over 20 million rubles. However, the factory has only a little more than 7000 rubles in its accounts.

The court documents also state that Hrodna City Executive Committee was in charge of the development and approval of the preliminary plan of the factory's rehabilitation.

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