E-Malt.com News article: 740

A Minsk Court has refused to consider a petition for bankruptcy brought against the Belarus brewery, Krinitsa, by the Russian beer group, Baltika Brewery on March 6.

Baltika, part of the Baltic Beverage Holding (BBH) group, is a joint venture between Carlsberg and Scottish & Newcastle (S&N). Baltica filed for the bankruptcy of Krinitsa in a bid to recover US$10.5 million, which it invested in the company last year.

A Baltika spokesman said: "Indeed the court has refused to consider bankruptcy of Krinitsa, but has given us no official document." The spokesman added he would not comment further on the brewer's next course of action in light of the court ruling.

In 2001, Baltika entered an agreement with the Belarus government through which the Russian company would invest some US$50 million in Krinitsa in exchange for a controlling stake in the brewery. But the Belarus government decided to reduce this to a 30% stake after Baltika had already invested US$10.5m. Belarus government representatives were quoted earlier this week saying that the country did not need any foreign investment in its beer industry.

10 March, 2003