Wednesday, December 7 2016 19:43

Government supports bankruptcy procedure of "Nairit" plant aimed at freezing its debts

Government supports bankruptcy procedure of "Nairit" plant aimed at freezing its debts

ArmInfo. Bankruptcy of Nairit plant, the largest enterprise in Armenia producing synthetic rubber, has one goal-to freeze the debts, Head of Government's Administration, Minister David Harutyunyan stated today in parliament. According to him debts could become a serious obstacle for attracting possible investors. "According to our legislation these debts can be frozen only via bankruptcy procedure", he noted.

At the same time Harutyunyan stated that in post-soviet years Nairit plant has never been a profitable enterprise. Moreover, he states that the employees were paid salaries from the state funds and at the expense of taxpayers. "If an investor is found, it will be good, but if not, the state can not spend funds on the plant forever", the Minister stated.

On December 5 former employees of Yerevan Nairit plant applied to the owner of Electric Networks of Armenia Samvel Karapetyan with an open letter.  As the letter reads, yet on Aril 7, 2015 ENA submitted an application to the court with a purpose to get paid the electric power used by the plant and to raise a bankruptcy procedure. The common jurisdiction court of the Shengavit community passed the ENA claim and raised a bankruptcy recognition process in respect to Nairit.  According to the decision taken on November 28 Nairit did not implement the AMD 1 mlrd 235 mln 3 thsnd 222 ( over USD 2,6 mln) payment due to its obligations. "This decision was very unexpected and painful for Nairit employees," the letter reads. Former employees remind that recently the Ministry of Energy Infrastructures and Natural Resources of Armenia announced a tender on private investments to restart the production facilities of Nairit Plant JSC. It was stated that the tender is open for bids until January 20, 2017 According to the authors of the letter, during recent months a number of investors expressed a willingness to invest in Nairit, but the decision on bankruptcy will zero out all the efforts. "At this, a month earlier to the deadline of submission of bids a decision is taken which may cut any probability of rehabilitation of the plant," Nairit employees state. The petition authors remind that Samvel Karapetyan's charitable activities are well known. Noting the capability of the ENA owner, they ask to suspend the decision of the court in respect to Nairit bankruptcy until January 20, 2017. "The tender announced and the reload of the plant could become a reality only in the case of the decision being suspended," employees of Nairit state. 

To note, Nairit Plant has been idle since April 2010. The Plant's shares were given as security against the CIS InterStateBank's 70 mln USD loan provided in 2006 for 5 years - till late Dec 2011 - at 12.5% p.a. In 2006, 90% of Nairit Plant's shares were sold to Rhinoville Property Limited (UK). The latter owns an 89,999% stake in the plant, Armenian Ministry of Energy and Natural Resources - 4,496%, Gazprom Armenia CJSC (previously ArmRusgasprom) - 3,596%, and Yerevan Thermal Power Plant - 1,907%. It was previously reported that EU-ASIA Business Finance Centre  (Slovakia) is ready to invest up to 150 mln EUR in Nairit Plant. Besides, on November 14 considering the decision of the Nairit Plant CJSC shareholder meeting the Ministry of Energy Infrastructures and Natural Resources has announced a tender for attracting private investors.

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