July 28, 2011

Dobeles Dzirnavnieks seeks bankruptcy against Vievio poultry complex

Latvia's grain processor Dobeles Dzirnavnieks, a supplier to Vievio Paukstynas, is seeking to have the Lithuanian poultry complex declared bankrupt.

Other claimants include Linas Agro, Litagros Grudai and Malsena Plius.

The Vilnius regional court on June 30 opened bankruptcy proceedings against Vievio Paukstynas, which is controlled by Tautvydas Barstys and KG Group, but the decision was appealed, according to the court's spokesman, Gintautas Stalnionis, and the court-appointed administrator, Aurimas Valaitis.

"With the decision having been appealed, we are not authorised to act," Valaitis said.

Kristina Petrosiene, the spokeswoman for the Lithuanian Appeals Court, confirmed to that it is only the appointment of the bankruptcy administrator that has been contested and that Imlitex, a company that participates in the proceedings as a third person, has lodged the appeal.

Vievio Paukstynas posted sales of LTL66 million (US$27 million) in 2010. Its debts to suppliers amounted to LTL21 million (US$8.7 million).