The rehabilitation period for Vitex may be extended

November 30, Vitebsk / Sergei Kochetov - BELTA /. The creditors' meeting of KUPP "Vitteks" decided on the need to extend the enterprise's rehabilitation period, which ends in November 2009. This was reported to a BELTA correspondent by Viktor Shilchenok, a judge of the Vitebsk Region Economic Court, following a visit to the bankrupt by a commission comprising representatives of the Supreme Economic Court, the regional economic court, local authorities, and the prosecutor's office. The final decision on the possibility of extending the rehabilitation period will be made by the court on November 6, taking into account the opinion of the creditors' meeting and the enterprise's owner, which is the Vitebsk Regional Executive Committee. The rehabilitation of "Vitteks" was introduced in May 2008. As the results of the work in the recovery procedure show, the enterprise remains unprofitable and does not meet the financial and economic indicators of the rehabilitation plan, despite positive developments in its activities. To develop the enterprise and improve its financial condition, the crisis manager has optimized production. The buildings of the terry cloth workshop and the electrical workshop have been retained on the balance sheet, unused buildings with a total area of over 7.5 thousand square meters have been mothballed, and real estate and property have been put up for sale. In 2008-2009, "Vitteks" expanded its product range (children's items, plush blankets, decorative fabric). Work has been done to promote products in the domestic market. Nevertheless, the sale of the enterprise's assets remains the only source of funds for increasing production volumes and technical re-equipment under the rehabilitation plan. The main reason for this state of affairs is the actual lack of investment support from the owner. The enterprise is left alone with problems that have accumulated over the years. In addition, the issues of transferring "Vitteks" infrastructure facilities to the balance of authorized local self-government bodies have not yet been resolved. The case of economic insolvency (bankruptcy) of KUPP "Vitteks" was initiated by the economic court in December 2007 at the initiative of the enterprise. Upon completion of the bankruptcy proceedings, it was declared bankrupt with rehabilitation, the rehabilitation period being 18 months (until November 2009). As of October 20, 2009, the enterprise's debt in the amount of almost Br2.4 billion was included in the register of creditors' claims, of which more than 70% are debts to the budget and the social protection fund. The main activity of "Vitteks" is the production of ready-made textile products, cotton and other fabrics, knitted fabric, and clothing. The enterprise employs 50 people. -0-