The Vitebsk Region Economic Court has opened bankruptcy proceedings in the case of the Tolochin Textile Factory

April 21, Vitebsk / Sergey Kochetov - BELTA /. The Economic Court of the Vitebsk Region has decided to open bankruptcy proceedings in the case of the bankruptcy of the unitary communal production enterprise "Tolochin Textile Factory", the judge Olga Gatilo told a BELTA correspondent. The case of economic insolvency (bankruptcy) of the textile factory was initiated in February 2010 at the initiative of the enterprise itself. Following the protective period and based on the analysis of the enterprise's financial and economic activities, the court concluded that there were grounds for opening bankruptcy proceedings against the debtor for a period of two months. An anti-crisis manager has been appointed, who is obliged during this time to analyze the financial solvency and inventory of the enterprise's property, and to form a list of creditors and a register of creditors' claims. Based on the results of the bankruptcy proceedings, a decision will be made on bankruptcy with rehabilitation or liquidation of the enterprise. As of November 2009, the factory's debt amounted to almost Br1.5 billion, including wage arrears and mandatory payments to the budget exceeding Br900 million. Previously undertaken support measures for the enterprise totaling Br400 million did not yield results, as the coefficients characterizing the financial condition of the enterprise tend to deteriorate. The commission for the prevention of economic insolvency and bankruptcy under the regional executive committee, which acts as the owner of the enterprise, deemed pre-trial rehabilitation of the enterprise inexpedient, and the Vitebsk Regional Executive Committee supported the need to initiate proceedings in the case of economic insolvency against the factory. Tolochin Textile Factory was established in 1988. The main activities of the enterprise are the production of textile products, cotton and woolen fabrics. The enterprise employs about 100 people. -0-