Another Shoe Manufacturer Has Been Declared Insolvent
- 9.10.2026, 16:31
This time, we're talking about "Neman."
In late September of this year, the Economic Court of the Grodno Region initiated reorganization proceedings against the Grodno-based “Neman” Shoe Factory. This was reported on the website of the Unified State Register of Bankruptcy Information, according to "Zerkalo".
On September 29, the Economic Court of the Grodno Region declared the factory economically insolvent and initiated its reorganization. This is a procedure applied to a debtor—a legal entity—to ensure its effective economic operations and restore its solvency, as well as to settle accounts with its creditors in accordance with the established order of priority. Efforts to “restore the company to financial health” are expected to continue until September 29, 2029.
Previously, a reorganization process was initiated for another footwear manufacturer—the company “Belvest.” It, too, was deemed economically insolvent.
How the story with the “Neman” factory is unfolding
In May of this year, it became known that the Grodno-based “Neman” shoe factory, which is nearly 60% state-owned, filed a petition with the Economic Court of the Grodno Region to be declared insolvent. The factory’s debt to creditors amounted to 4,253,000 rubles, while the value of its assets was estimated at 14,098,000 rubles.
On May 11, the Grodno Region Economic Court opened insolvency proceedings for the factory and imposed a protective period lasting until June 1 of this year. This is the period during which the provisional administrator assesses whether the company has the ability to improve its financial situation and settle its debts.
On June 1, the Economic Court of the Grodno Region initiated bankruptcy proceedings against the Grodno “Neman” Shoe Factory. This is a financial insolvency procedure. It is conducted to satisfy creditors’ claims and protect the rights of both the debtor and the creditors during restructuring. If restructuring is not possible or there are no grounds for it, then liquidation proceedings against the debtor are initiated.
The court reported that as of May 1 of this year, the factory’s debt to creditors amounted to 5,626,000 rubles. In other words, it continues to grow.
“OJSC ‘Grodno Shoe Factory “Neman”’ has assets that can be used to satisfy creditors’ claims; therefore, the temporary administrator indicated that there are no grounds for bankruptcy proceedings against the debtor,” the court documents state.
The documents also indicated that a preliminary restructuring plan for the factory had been developed and approved by the Grodno City Executive Committee.