The management of the Siauliu Stumbras leather producer in Lithuania is reported to have initiated bankruptcy proceedings against the company but the company intends to continue production, according to Baltic Business News. Although at present the company’s debts, worth US$15.0 million, exceed the value of their assets, Siauliu Stumbras’ operations are expected to become profitable and allow them to pay off creditors within about twelve months.
Siauliu Stumbras recorded a total loss worth US$10.1 million in 2004. However, sales in the first four months of this year at US$3.58 million were more than double those in the same period last year.
It should be noted that the report has not been confirmed with Siauliu Stumbras.
