The question of the existence of KUPP "Vitteks" will be considered by the end of its rehabilitation period in November 2009

June 18, Vitebsk / Sergey Kochetov - BELTA /. The issue of the further fate of the communal unitary production enterprise (KUPP) "Vitteks", which is undergoing bankruptcy proceedings with rehabilitation, will be decided by the end of its rehabilitation period in November 2009. This was reported to a BELTA correspondent by Elena Nikolaeva, Chairperson of the Economic Court of the Vitebsk Region, following a field court session held today at the enterprise. According to her, the rehabilitation of "Vitteks" was introduced in May 2008. As the results of the first year of operation in the recovery procedure showed, the enterprise is operating at a loss and is not meeting the financial and economic indicators of the rehabilitation plan. A way out of the current situation could be the adoption by the Vitebsk Regional Executive Committee, which is the owner of the enterprise, of a fundamental decision on the further fate of "Vitteks," Elena Nikolaeva noted. According to Decree No. 178, commissions established under state bodies to prevent economic insolvency (bankruptcy) will assess the effectiveness of not only pre-trial recovery plans for enterprises but also their rehabilitation plans. Such a commission under the regional executive committee will have to assess the progress of "Vitteks" recovery, taking into account which the Economic Court will make a final decision on the possibility of extending the rehabilitation, Elena Nikolaeva said. 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 left on the enterprise's balance sheet, unused buildings with a total area of over 7.5 thousand square meters have been mothballed, and real estate and property worth over Br2.9 billion have been put up for sale. The measures taken will allow for a fourfold reduction in depreciation charges in 2009 compared to 2008. Since 2009, the enterprise has switched to a simplified tax system, which makes it possible to reduce the tax burden. In 2008-2009, the enterprise expanded its product range (children's items, plush blankets, decorative fabric). The growth rate of production volumes for 5 months of 2009 was 150% in comparable prices compared to the corresponding period of last year. Work has been carried out to promote products in the domestic market, and about 70 sales contracts have been concluded with trade enterprises in the country. Nevertheless, the sale of enterprise property was the only source of funds for increasing production volumes and technical re-equipment under the rehabilitation plan. To overcome bankruptcy and recover the enterprise, local government bodies should participate more actively in the fate of the enterprise, promptly resolving issues of transferring "Vitteks" infrastructure facilities to the balance of authorized local self-government bodies, Elena Nikolaeva believes. In addition, the enterprise cannot do without investment support, and the resolution of these issues is also within the competence of the owner of the communal enterprise. 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, the enterprise was declared bankrupt with rehabilitation, the rehabilitation period was set at 18 months until November 2009. As of June 1, 2009, the enterprise's debt in the amount of almost Br2.4 billion was included in the register of creditors' claims. 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. In total, the Economic Court of the Vitebsk Region has 13 cases of economic insolvency (bankruptcy) of enterprises that are important for the country's economy and social sphere. Three of these cases involve enterprises undergoing rehabilitation. -0-