YEREVAN, MARCH 24, NOYAN TAPAN. At the March 20 court sitting of the RA Administrative Court, Nairit chemical plant, whose debt to Electric Networks of Armenia (ENA) company amounts to about a billion drams (about 2.5 million USD), assumed an obligation to pay the debt for supplied power until late March. The ENA had applied to court with the request to declare Nairit bankrupt, thus trying to "officially find out the financial possibilities" of one of its largest consumers. The Director General of Nairit Plant CJSC Vahan Melkonian (who was in Moscow on the day of the court sitting) told Radio Liberty by phone that he intended to sign new agreements in Russia and pay the previous debts. "The plant's assets exceed many times the sum, due to which an attempt is being made to declare the plant bankrupt. It is not a tragic sum," V. Melkonian said. The expenses on power bearing substances at the plant make up about 70% of the cost price of rubber. The plant's overall debt makes about 45 million USD, including arrears of wages of 600 thousand USD. However, the Director of ENA Yevgeny Gladunchik is not optimistic. "Nairit gets by rather than operates. The principle of its work is to survive somehow. This is the problem. And it is not the first failure. During all the time I have been working with them, they have always said that they will have money tomorrow. This tomorrow has lasted 6 years," he noted. The Armenian government is 10% shareholder of Nairit plant. According to RA minsiter of energy Armen Movsisian, the situation at Nairit plant was caused by the economic crisis. "The circulating assets that became production have remained in warehouses. Time was needed so that prices would become stable and a market for production's sale would be found," the minister said. He stated that the plant, which has been standing idle since December 1, 2008, will resume rubber production by April 15.

---