Agriculture Ministry to propose restructuring plans to improve situation of insolvent companies

SA Aroma was brought to insolvency by its administration and persons from the previous governments, Minister of Agriculture and Food Industry Valeriu Cosarciuc said at a news conference. He said the company has debts of 262 million lei, 130 million lei of which to banks. Only the interest that the company must pay monthly totals 2.6 million lei. On the other hand, the turnout of SA Aroma this year amounted to 17 million lei, despite the sustained losses. Another bankrupt company is the Balti-based Food Products Company, which stopped work. It has debts of 50 million lei, 30 million lei of which represent non-paid loans. The National – Vin wine complex and SA Moldresurse are in a similar situation. The two companies have debts of 36 million lei, and, respectively 96 million lei. According to the minister, the situation of SA Moldresurse is worrisome. The company signed an agreement to import oil products and transferred about US$2.5 million, but the diesel oil has not been delivered. The minister stressed that the Agriculture Ministry is taking measures to help these companies. “We will suggest not liquidating these companies, but using the Plan Procedure – a restructuring plan that will enable them to improve their organizational structure and management and to review their sales polices,” Valeriu Cosarciuc said. “For example SA Aroma, which is a large company working in Chisinau, does not have a marketing department. The products were sold as persons from the previous administrations ordered. The raw material was purchased at much higher prices. A sum of 53 million lei was used to buy wine materials, paying more than 5 lei a liter, while the market value was 3.5 lei.” He also said that the Ministry will examine all the contracts signed with the managers of the state-owned companies working in agriculture and food industry and modify them so that they specify performance criteria.