A Three-Year Saga of Bankrupt Dairy Suppliers in Minsk
Belarusian firms facing financial collapse
In the heart of Belarus, the city of Minsk, two once-thriving dairy companies - "MS Trading" and "Milking" - are now struggling to stay afloat. Their turbulent journey traces back to three years ago when their directors found themselves in the dock, accused of fraud, as reported by "Mirror".
The Economic Court of Minsk recently processed the bankruptcy cases of both companies. As per the state registry of bankruptcy data, these dairy suppliers share a connection with two other companies: "GenAr Group" and "MoloTrey".
The financial turmoil began on May 21 when the procedure was initiated due to claims from the creditor, "Bank RRB", to which each company owed a staggering 11.2 million Russian rubles, equating to approximately 422,800 Belarusian rubles at the NB rate on June 16.
The liquidation procedure was initiated as the debtors were found to have no assets. This economic insolvency approach aims to satisfy the claims of the creditor, protect the rights of both the debtor and creditors during rehabilitation, and initiate a liquidation process if rehabilitation is impossible or unjustified.
Both suppliers were previously mired in a fraud case. In 2022, the directors of these companies were convicted of fraud on a grand scale. As per the case documents, over the period from October 2020 to September 2021, the accused manipulated funds, well aware they would not meet their obligations. The total damage amounted to over 1.3 million rubles. The Minsk Court sentenced the manager to a five-year prison term in a strict regime colony and a hefty fine.
The other two companies, managed by the same director, "GenAr Group" was liquidated in 2022, and "MoloTrey" continues to operate, though grappling with financial difficulties.
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- The financial difficulties of the dairy suppliers in Minsk, "MS Trading" and "Milking," extend to two other businesses, "GenAr Group" and "MoloTrey," who have been connected to them due to past financial misconduct.
- Apart from the ongoing challenges in the dairy business sector, the city of Minsk experienced a significant criminal case involving fraud, as the directors of "MS Trading," "Milking," and "GenAr Group" were convicted of fraud on a grand scale in 2022.
