Vereschaginsky mill (VKHP) the largest producer of animal feed in the Prikamye rgion of Russia has been put up for sale in an upcoming auction. The company's creditors are asking for 312.6 million rubles for the mill and site.
The administrator of VKHP Lyudmila Vlasova published an announcement for the auction of the complex.
VKHP produces flour, cereals and compound feeds. The feed mill has a capacity of 630 tonnes of compound feed a day.
VKHP was declared bankrupt in October 2011, and currently owes creditors 380 million rubles. There are doubts about the factory selling quickly though, with a lack of interest from potential buyers.
Newly appointed administrator, Lyudmila Vlasova said that the asking price was too high for the first auction, and that the company required a serious commitment to modernize production and increase working capital.
At present the mill currently employs 91 people, whereas previously this number reached 600.
Perm flour mill (PMZ) and Permian trading company "Uralkhim" were said to be interested in the purchase, although this could not be confirmed.
The regional Agriculture Ministry also stated that they did not see a quick change of ownership at VKHP happening, stating that the search for a buyer for the mill had been ongoing for the past two years with no sale achieved yet.
They stated that it was of the utmost importance to keep VKHP operational as it is the only mill in the region engaged in the production of animal feed plant on an industrial scale.