Pitkyaranta pulpmill declared bankrupt

The Arbitration Court of Karelia admitted bankruptcy status of Pitkyaranta pulpmill, according to Forest Portal of Karelia. Thus, the court approved the application of the enterprise on its own insolvency. The mill opened bankruptcy proceedings for a period of six months. Igor Kovalyov is appointed bankruptcy administrator.

In October 2012, monitoring procedure was introduced at the Pitkyaranta pulpmill. By that time, the total amount owed to the mill creditors exceeded 480 million Rubles. Mill’s property was mortgaged for bank loans.

It was expected that the introduction of monitoring procedure will allow the company to freeze the claims of creditors and try to stabilize its financial condition. However, this has not happened, and one of the largest industrial enterprises of Karelia became bankrupt.