The municipal enterprise "Vitteks" has exited the rehabilitation procedure and will be liquidated

November 11, Vitebsk / Sergey Kochetov - BELTA /. The Vitebsk Regional Economic Court has decided to open liquidation proceedings against the unitary municipal production enterprise "Vitteks", which has exited the rehabilitation procedure. This was reported to a BELTA correspondent by the economic court judge Viktor Shilchenok. The economic court established that, following the rehabilitation, which lasted the maximum permissible 30-month period, the enterprise failed to restore solvency and meet creditors' claims. The liquidation of "Vitteks" will be carried out in accordance with the decision of the enterprise's creditors' meeting, which did not approve the settlement agreement proposed by the crisis manager and petitioned for the opening of liquidation proceedings. After the court's decision enters into legal force, the crisis manager must begin to pay off the enterprise's debts by selling its assets and collecting accounts receivable. Liquidation procedures must be completed within 12 months. The rehabilitation of "Vitteks" was introduced in May 2008. As the results of the recovery procedure show, the enterprise failed to meet the financial and economic indicators of the rehabilitation plan and remains unprofitable, despite some positive developments in its activities. To develop the enterprise and improve its financial condition, the crisis manager optimized production. The buildings of the terry cloth workshop and the electrical workshop were left on the enterprise's balance sheet, unused buildings with a total area of over 7.5 thousand square meters were mothballed, and real estate and property were put up for sale. Nevertheless, the sole source of funds for increasing production volumes, re-equipping, and meeting creditors' claims during the rehabilitation was the sale of the enterprise's assets. The main reason for this situation was the virtual absence of investment support from the owner. A total of 36 auctions were held during the rehabilitation period, most of which were unsuccessful. Upon completion of "Vitteks"' rehabilitation, the creditors' claims register showed debts amounting to about Br2.2 billion, of which almost 30% were debts to the budget and the social protection fund. During the rehabilitation period, the enterprise paid off only 5% of its total debt to creditors. The case of economic insolvency (bankruptcy) of UPMP "Vitteks" was initiated by the economic court in December 2007 at the enterprise's own initiative. Upon completion of the bankruptcy proceedings, the enterprise was declared bankrupt with rehabilitation, the maximum period for which expired in November 2010. The main activities of "Vitteks" include the production of finished textile products, cotton and other fabrics, knitted fabric, and clothing. The enterprise employs 38 people. -0-