THERE YOU GO AGAIN!

Join-Stock Company VostokTransflot (formerly state-owned Vostokrybkholodflot) is, though more exactly, was until very recently, one of the largest reefer companies in Russia. VostokTransflot has carried perishable foods from Asia, Americas, Australia, etc.

In Soviet time, VostokTransflot (VTF) was a large and prosperous company. Even now we can still observe the remains of the former grandeur: 58 vessels are still listed on the company's balance valued at 200 million dollars. However, listed does not necessarily mean that they still belong to the company. In 1991, VTF singe a pool agreement with Oreef Pool, uder which practically all the vessels slowly vanished in the pool. Alas, to never come back.

The company lost nearly all its fleet. There are few more details characterizing the company's current state of affairs. Out of documents, made available to the editor's office, we new the following facts. 60% of company's revenues relate to scrap-metal sales. In recent yars 32 vessels were sold this way. The crew jobs dropped drastically from 5000 in 1992 to 275 in 1996. The monthly wages of a VTF captain is 1,000 dollars, of a 3rd engineer 300 dollars. However, even this money were hard to get: the crews were not paid for 6 months on end. For the sake of comparison: a VBTRF 3rd engineer is paid 1300 dollars. As of balance July 1, 1996, VTF's liabilities equal 47.4 billion rubles. According to a new President, Victor Ostapenko, elected a month ago (the ex-President Vladimir Mistyuk was the one who had signed the pool agreement), the indebtedness to state budget is 21 billion rubles, indebtedness in wages 9 billion rubles, overall credit liabilities 30 billion rubles. Minus the the pool liabilities of 15 million dollars, which is, somehow, not reflected on the VTF's balance sheet.

The further developments in this story look not very much funny. If privitazations is found illegal, the shareholders will be void of their investments. As far as the company itself is concerned, its perspectives do not look very bright at all. Having no assets, VTF cannot pay off the liabilities. Therefore the Internal Revenue Service and/or Bankruptcy Commission will sooner take away everything they can in favor of the state. We would rather be mistaken, but it looks like VTF will soon exist no longer.