The Economic Court of the Vitebsk region issued a decision on the opening of bankruptcy proceedings in respect of the Vitebsk "KIM" in the case of its bankruptcy. Upon completion of this special procedure will be determined by fate – rehabilitation or liquidation – the factory, which in 2016 will celebrate 85 years since its foundation.

During the protection period, set at 3 months, analysis of financial and economic activity of the debtor, the results of which have confirmed its persistent insolvency. This is the basis for the opening of bankruptcy proceedings. According to the interim manager Paul Hare, payable factory is estimated at a total of more than 200 billion rubles, and its size is growing. The director of "KIM" Victor Aksenov explained that since joining the company in bankruptcy creditors have suspended funding to ensure the production of a serious boot failed, and knitting section and had to stop at all. The deficit of working capital in the factory more than 95 billion rubles.

Today the management of the company in cooperation with the city employment center and other services are working on various options for employment of workers. Over the past three months we have left 120 people, and the number of employees continued to decline. Meanwhile, in the state of more than 630 professionals. Another problematic issue is the elimination of wage arrears. Almost the only option to find resources for priority payments is the sale of real estate. Already put up for auction two sites – shop and cafe on the Victory Square with a total starting price of almost 11 billion rubles. Money from the sale will go to pay off salary debts and payments on other social obligations.

Economic Court appointed crisis manager Paul Hare, to which the company enters administration. He is to compile a register of creditors and liabilities of the company, to take measures for the preservation of the property, as well as to prepare two versions of plans for the future of the company – its reorganization or liquidation. During the bankruptcy proceedings shall be suspended accrual of interest, penalties and other economic sanctions on all types of its debt canceled previously adopted measures to ensure that the claims of creditors, removed the seizure of property of the debtor is not allowed to suspend execution of the recovery, or other pecuniary sanctions.

Vitebskiye Vesti