Sale of Bankrupt Textile Firm Comes Apart at Seams
The latest attempt to sell off the assets of the bankrupt Kreenholm textile plant in Narva has fallen through as the would-be buyer, New Krenholm Holding OÜ, backed out of the deal.
Martin Krupp, who is administering the bankruptcy for the plant's receiver, Kreenholmi Valduse AS, said that New Krenholm had changed its mind on the sale, which would have brought creditors an undisclosed sum.
"Evidently they don't have money. I tried to get in touch with representatives of the firm again, but in all likelihood we'll have to put Kreenholm's property up for sale once more," Krupp told rus.err.ee.
Local media reported in September that New Krenholm Holding, a previously unknown company registered this summer with 2,500 euros in starting capital, was intending to buy Kreenholm's assets, the most valuable part of which is its machinery.
Since the plant's previous owner announced bankruptcy last November, trustees have had little luck finding a buyer for the company assets. An auction at the end of 2010 listed a starting price of just under 5 million euros, while one held in February attempted to offload the assets for 4.2 million.
Steve Roman