BLACK MARK TO DALMOREPRODUCT FROM INVESTIGATORS

As became known to "ZR," officials of the Investigations Department of the Moscow Interior Affairs Office gave a press conference on fraudulent bankruptcies.

Some 50% of corporate bankruptcies are organized on intention and, therefore, are unlawful, stated Investigations Department head Andrei Stepantsev. By promising to say a firm "no" to those who manufacture such crimes and hope to remain unpunished, investigators supported members of Primorsky Krai legislative assembly who urge for an inquiry into bankruptcies in Primorye. Lawmakers urge for an investigation, and Moscow investigators just do that - the largest fraud for $22.7 million was organized in Moscow.

Investigator Pavel Zhesterov says that fraudulent bankruptcies are generally manufactured to avoid paying debts through withdrawing assets to affiliated companies. One more reason is "third party's interest in replacing owner." By his words, "fictitious bankruptcies are organized by well prepared individuals or groups of individuals using most diverse schemes. In particular, they manufacture a fictitious debt, which makes it possible to pronounce the debtor bankrupt. Sometimes, investigators uncover deals between fraudulent bankruptcy organizers and court-appointed managers.

In particular, Pavel Zhesterov said that in DalMoreProduct's case bank loans issued on collateral of ships have not been repaid. In the meantime, more than half the ships on collateral were in this or that manner moved outside the Russian Federation. The Interior Affairs Ministry investigated 8 criminal cases relating to DMP, subsequently turned over to the Investigations Office of the Far East Federal District.

Vladivostok prosecutors sealed DMP's administrative building and confiscated some documents as part of an investigation over falsified debt. Besides, as district prosecutor Viktor Borisenko said, they will investigate the reason for half-year arrears in wages. "If mercenary or some other personal interestedness of managers is proven, they will be brought to criminal liability," he noted.

DMP management calculated that its losses as result of investigators' actions amounted to 20 million rubles. This the cost of 4 downtime days for the mother factory bases "Petr Zhitnikov" and "Sodruzhestvo" due to search in DMP office and disorganization of work to provide supplies for ships preparing for the sea.

By words of DMP"s court-appointed manager Alexander Sukach, this year's Alaska pollack fishery is in jeopardy. If the company fails to harvest the allocated quotas for aquatic bioresources, they will be out at auction. That means that some 3,000 persons in Primorye will lose jobs. Blame for that will fall on investigators.

However, there is another viewpoint on this problem. By Pavel Zhesterov's words, all this fuss is a result of changing situation with fraudulent bankruptcies. "Court verdicts have been pronounced on two fraudulent bankruptcies, and this is only a beginning." - Oleg SERLOV.

DALMOREPRODUCT MANAGERS APPEAL TO MEDIA

As Moscow and Primorye investigators focus on DalMoreProduct (DMP), its management led by court-appointed manager Alexander Sukach can only appeal to media through press conferences.

As analysts expected, Alexander Sukach and ZAO Far Eastern Consulting Agency director Andrei Granatov, who provides legal services to the new management, blamed creditors from the Bank of Moscow for organizing this "attack" on DMP.

In Sukach's opinion, the critical factor in escalating this conflict was fish quotas allocated to DMP for 2004. By his words, the crafty bankers had planned another attempt to seize DMP for 27 January. On that day, court in Khabarovsk examined the complaint lodged by the Bank of Moscow and OOO Lekast (acting in AgroPromCredit's interest as some believe) to remove Sukach from his position. "However, their hopes failed because court had nothing against me, and I have been DMP court-appointed manager since 9 October 2003," he said.

Alexander Sukach also said that losses sustained from actions by prosecutors of Frunzensky District of Vladivostok, who confiscated documents on VAT compensation for over 30 million rubles as part of a criminal investigation over DMP's falsified debt, are much larger. He believes this money has been lost for the company, as DMP will have to pay this amount. "I have no doubt that new criminal cases will be manufactured based on the confiscated documents," he noted.

Andrei Granatov said that they issued notices to all creditors on 16 January with request to submit within two weeks documents confirming their claims. "After that, we intended to verify the total debt. However, force majeure circumstances, not quite clear to us, were triggered off," he stated.

By the court-appointed manager's words, little has remained of DMP's fleet to date. "Only two factory mother bases - the Petr Zhitnikov and the Sodruzhestvo - are in operational condition. The Rybak Vladivostoka lies in unserviceable condition at Dalzavod yard and can hardly be used any more. The Rybak Primorya is in poor condition as well. Both mother bases had been leased by previous management for joint operations and to various affiliated companies. Besides, we have two STR catchers in operational condition - the Sadovsk and the Surovsk - prepared for pollack fishery. We recently withdrew two other STRs from joint management. One of them, the Reineke, is already under repairs at the military yard in Chazhma," Alexander Sukach informed. - Oleg KLIMENKO.

CHUKOTKA GOVERNMENT MAY BUY GEOLOGICAL COMPANY

"GeoRegion" geological company signed a contract with the Chukotka government on subsurface exploration.

Though the company is supposed to be financed by the federal budget, it has not received any resources during several years. Moreover, the governmental order has not been approved by the Ministry of Natural Resources. The government of Chukotka provided 23 million rubles for geological works in three locations, which will support GeoRegion's operations for the whole of 2004. Further prospects are vague. There is a likelihood that the company will be auctioned off and converted to a joint-stock company. The most likely buyer is the Chukotka government interested in continued geological exploration works. - Yulia PROKHOROVA.

DALSVYAZ SELLING NMT ASSETS

The board of OAO Dalsvyaz accepted proposal by OOO MC Direct to buy its NMT assets.

As Dalsvyaz' press release puts it the assets include stakes in three mobile telephone companies - ZAO Sotovaya Svyaz Birobidzhana (60%), ZAO Khabarovsky Sotovyi Telefon (30%) and ZAO Amursky Sotovyi Telefon (19%).

By words of Alexander Zheludkov, OAO Dalsvyaz deputy director general in charge of corporate development, a third-party evaluation of the three packages set their total price at $500,000. He further said that Dalsvyaz received two proposals: ZAO Sky Link offered $300,000 and OOO MC Direct (100% owned by Sky Link) offered $550,000. The board of directors considered these two proposals and decided to sell Dalsvyaz' packages in NMT-450 cellular communication operators.

Alexander Zheludkov noted that Dalsvyaz' involvement in these companies has been inefficient and with no prospects. None of them pays dividends, and Dalsvyaz' stakes in ZAO Khabarovsky Sotovyi Telefon and ZAO Amursky Sotovyi Telefon were small. By his words, the deal is not transacted so far, because its parties need to follow a number of legal procedures and settle payments.

Alexander Zheludkov said that Dalsvyaz takes action to analyze efficiency of its participation in charter capital of other companies and make such participation more efficient. It plans to get rid of assets yielding no apparent effect and giving no competitive edge in the market.

"ZR" FILE: Dalsvyaz' main shareholder is OAO Svyazinvest with 38.1% of charter capital (56% of voting shares). Red Hand Investments Limited and Stotter Limited own 4.93% each, Lindsell Enterprises Limited holds 2.47%. - Olga DOBROLYUBOVA.

WHO BENEFITS BY NOISE AROUND "BOR"?

Bor company (Dalnegorsk, Primorsky Krai) is in the focus of the fuss raised recently by local politicians around bankruptcies. Bor sent an open letter to the legislative assembly of Primorsky Krai and the governor.

"We request you to guard our administration and staff against pressure and political tricks. Don't obstruct our work and don't defend us from anybody. We know that there is no alternative to receivership procedures. We are unable to repay huge debts. Apart from supporting production at same level, the new administration organized financial performance in such a manner that funds were available for urgent repairs and procurement of new process plants. We have already forgotten what unpaid wage is. However, funds are needed for modernization, because our main assets ate 100% depreciated. Who will invest in somebody else's property? Only the owner can be investor."

Average monthly wage at Bor is currently about 6,000 rubles.

Says OAO Bor executive director Igor Popov: "Court-appointed manager Alexander Karlin and myself came in late 2002 and took over the company already with huge outstanding debts. Arbitration court will decide, whether those debts had been made by our predecessors purposefully or not. As for product marketing flow, we've managed to make it transparent with no middlemen. Today, all deliveries are handled by the affiliated company Bor-Export and all contracts executed on time."

Though the ad hoc working group appointed by legislators to inquire into bankruptcies plans to investigate Bor first, no inspectors have visited Dalnegorsk in this connection so far. People in Dalnegorsk are quiet and, unlike regional lawmakers, not afraid of the word "bankruptcy." The area's second-largest economic mainstay DalPolyMetal has already undergone bankruptcy procedures. It has a new owner and continues working as before. - Tatiana KUROCHKINA.