Flax mill in Pinsk shut down over bankruptcy
The Brest Regional Economic Court has ruled to close down a flax mill in Pinsk, reports the local newspaper Zarya.
The factory faced dire straits back in 1990s. The crisis was caused by the low quality of raw materials and the lack of equipment during the flax harvesting season. The flax was planted and grown by the factory itself.
The factory filed for bankruptcy in August 2006. The procedure took almost 8 months. Over this period of time, the mill proved that it was insolvent, with debts reaching Br2.5 billion by December 2006.
