‘The current state of events at Yekaterinburg Meatpacking Plant Ltd. is really not good for its creditors. Should the plant abandon its financial liabilities, UralTransBank will certainly get its money back in the end, but this is not going to be the money they need here and now. Cases like this are becoming more and more common nowadays, when a client chooses the bank rather than a bank chooses a client,’ says Director of Bic Link Vladimir Alyabiev

Following the attempted introduction of the new management team at Yekaterinburg Meatpacking Plant Ltd., its creditors now find themselves in a strait: neither the structure nor the management of the company has been settled yet. Nor is anyone aware of the new management’s policy in terms of the company’s assets and liabilities.

Among the plant’s creditors are some federal and regional organizations that now have certain grounds for worrying about their investments. According to the data provided by one of the creditors, Yekaterinburg Meatpacking Plant Ltd. owed approximately 96m RUR to UralTransBank and 46m RUR to Vozrozhdeniye Bank in the middle of 2005. Already then, these debts posed a problem for both banks.The latter even had to close down its Yekaterinburg subsidiary, and UralTransBank got on the list of Russia’s five most unprofitable banks in the first half of 2005.