A MUNICIPAL ENTERPRISE OF CHUVASHIA WENT BANKRUPT

The Clean City unitary enterprise located in the city of Kanash in the Chuvash Republic went bankrupt. The company was declared insolvent - a deadline (until January 5, 2020) was set for going through the bankruptcy proceedings. The initiator of the process was the city administration, which achieved the start of the process in May 2018.

The company was first taken under supervision, which transferred to external management five months later.

A claim for the need to start bankruptcy proceedings at the enterprise was submitted by the manager. In his opinion, the restoration of the company's solvency is not possible. By the beginning of March 2021, the municipal enterprise had a little more than 2 million rubles in its accounts and accounts receivable for almost 45 million rubles.

At the same time, as reported in the case file, the company's debts to third-order creditors amounted to more than 59 million rubles, and to second-order creditors - to more than 5 million. The company has not been able to repay them at least partially over the past few years.

The only thing that, according to the manager, the property will definitely be enough for is to pay the costs of the court proceedings.

According to the local media reports, Clean City is far from the only municipal enterprise in Chuvashia that has recently become insolvent. In the fall of 2020, the Shumerlinskiye city power grids went bankrupt with a debt of 3 million rubles. Then the organization itself became the initiator of the bankruptcy.

Another similar company, the insolvency of which was recognized by the court in June 2020, was the Shumerlinsky water services company. It went bankrupt on the initiative of power engineers, to whom the utilities owed more than 42 million rubles. Experts believe that the reason for the bankruptcy of municipal companies in Chuvashia is weak management and the general state of solvency of the population of the republic.