Cherkizovo purchases bankrupt pig company
Russian agricultural giant Cherkizovo has acquired the property of bankrupted Lipetsk pig farm in Lipesk Oblast, Russia for the total amount of RUB 150 million (US$ 2,4 million), stated a company report.
Russian agricultural giant Cherkizovo has acquired the property of bankrupted Lipetsk pig farm in Lipesk Oblast, Russia for the total amount of RUB 150 million (US$ 2,4 million), stated a company report.
Lipetsk pig farm was previously one of the largest pork producers in the region. However, the company had low a level of profitability and did not adjust to modernise production capacities.
As a result it generated a huge debt of RUB 1.2 billion (US$ 194 million) and declared itself bankrupt in the middle of 2011.
Experts in general say that this purchase is very profitable for Cherkizovo as the initial price set by the state authorities for the company’s assets was RUB 507 million (US$ 8,2 million). It has been put up for sale last year, but no purchase was made.
According to official information the bankrupt Lipetsk pig farm engaged in production, processing and heat treatment of meat and poultry meat products, canned meat and poultry food products. The authorised capital amounted to RUB 100 million (US$ 1.6 million).
It is still unknown how Cherkizovo intends to integrate the new assets in the structure of the holding.
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