Here starts the story nobody was expecting...
The Baltic Panel Group's plywood factory in Kohila was declared bankrupt in Rapla Courthouse yesterday. The factory's representative explained that bankruptcy was largely caused by the defective equipment bought in Italy
Attorney-at-law Erki Kergandberg, who represents OÜ Grove Invest, said that bankruptcy was largely caused by the defective equipment purchased from Italian company Angelo Cremona, which made it impossible to start manufacturing plywood at full capacity as intended in the business plan, writes Nädaline.
‘The equipment is defective, which means that the factory has never been able to work at full capacity and there were stoppages,’ said the debtor's representative and asked the court to declare bankruptcy.
Andres Hermet, who was appointed the trustee-in-bankruptcy of Kohila Plywood Factory, said that the company's losses have been high for three years, amounting to 66 million kroons last year.
‘The company's bank accounts are practically empty and debts to creditors, the Tax Board and utility service providers are huge. The debt burden of Baltic Panel Group including all outstanding liabilities amounts to 84 million kroons,’ noted Hermet and added that some workers of the factory have filed complaints with the Labour Dispute Committee for unpaid wages.
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