Court orders bankruptcy management at Transnefteprodukt subsidiary
MOSCOW. April 6 (Interfax) - Arbitration court in Moscow has ordered bankruptcy management at Sredne-Volzhsky Transnefteprodukt, a subsidiary of Transnefteprodukt, the lead company in the group, Transneft , said in its financial report for 2014.
The court appointed Oleg Parfenov to be outside manager.
Sredne-Volzhsky Transnefteprodukt's settlement counts were frozen over the course of 2013 through May 26, 2014. The company only paid taxes and fees to the budget and non-budgetary funds. It paid salaries to employees until December 19, 2013.
There are no plans to liquidate the enterprise.
Moscow arbitration court declared the company to be bankrupt on March 17, 2014, according to court documents. At that time payables exceeded 1 billion rubles. Sredne-Volzhsky Transnefteprodukt's property was frozen, with the enforcement proceeding recognizing 958 million rubles in unpaid debt. "The cash funds on accounts are insufficient to settle with creditors," the court said in the ruling last year that ordered supervision of the company on April 17.
At a meeting on December 12, 2014, the majority of creditors supported a bankruptcy declaration at the company. A representative of the temporary management said that the company could be returned to solvency.
Representatives of Transneft declined to comment to Interfax on the situation at the subsidiary.
Sredne-Volzhsky Transnefteprodukt has five trunk oil product pipelines stretching a total of 1,410.5 kilometers, as well as three originating pump stations, four midpoint pump stations, and a tank farm with capacity for over 38,000 cubic meters.
The company is one of the main hubs for oil product exports to CIS countries and the Baltic States and also ships diesel fuel to markets in Tatarstan, Chuvashia and Nizhny Novgorod region. It transports over 4 million tonnes of oil products a year.
