AVA Company assets were purchased by a new investor

100% of the authorized capital of the woodworking plant, AVA Company LLC, which is currently undergoing bankruptcy proceedings, has changed hands, report several regional-level mass media.  The former owner, Longoria Finance Corp. (BVI), sold the asset to Profit Fellowship LLC (Moscow).

“Purchasing AVA Company LLC is an important step for us; we intend to make this plant our key asset in this segment,” Head of Profit Fellowship commented this transaction. “Our purpose is building a value-added wood processing holding that will be a leader in the Russian market. This transaction is unique because it was committed during the economic downturn. We were initially planning to purchase only some of the equipment from AVA Company LLC on the auction but when we saw the quality of this asset — how well production equipment and space was preserved — we decided to try and restore the plant completely.”

The AVA Company’s plant was built in the Omsk industrial park, at the premises of the abandoned thermal power plant No. 6. It was opened in 2007. The initial investors were former executives from Troika Dialog investment bank. In autumn 2017, Commercial Court imposed a monitoring procedure and in summer 2018, bankruptcy administration. The opening price of company’s property was 50 million rubles.

The new investors started reorganizing the structure. Vladimir Smirnov registered several new legal entities at once, including Profit Wood Trade LLC, Profit Lessnab LLC, Profit Siberian Birch LLC and Profit Management Omsk asset management company.