Court orders outside supervision at Kondopoga paper mill
PETROZAVODSK. March 6 (Interfax) - Arbitration court in Karelia has ordered outside supervision at OJSC Kondopoga pulp and paper mill until September 9, 2013.
The court issued the ruling based on the company's own bankruptcy declaration, an Interfax correspondent reported from the courtroom.
"Kondopoga currently has payables totaling 13.738 billion rubles, many of them more than three months overdue," a company representative said.
Only about 20%-25% of capacity is being utilized and employees have been furloughed with pay, he said. Just 128 of 5,683 employees have been laid off, he said.
Introducing outside observation procedures will protect the insolvent company from creditors, in order to restore production, refinance and, perhaps in future, reprofile operations.
"We have about 17 billion rubles on the balance sheet, including receivables, fixed assets. We are quite capable of paying off our creditors. The main thing is managing those resources properly," he said.
Kondopoga filed for bankruptcy on January 17, 2013.
