Court terminates bankruptcy case of major baby food producer
MOSCOW, November 22 - RAPSI, Alyona Yegorova. A court terminated a bankruptcy case of SIVMA baby food producer, the Russian Legal Information Agency (RAPSI) reported on Tuesday.
SIVMA is engaged in baby food production and sales under the "Babushkino Lukoshko" trademark. It owns a 16,000 square meter warehouse in the Moscow Region. It is also Russia's leading distributor of photography equipment.
The claimant in the case was the Austrian HiPP GmbH & Co. Export KG, the world's leading baby food producer. HiPP reported on Tuesday that SIVMA repaid a five million euro principal debt to it. The claimant's lawyer said that the court bailiffs have already received the principal debt and interest from SIVMA but HiPP has not obtained the money yet.
SIVMA's representative reported to the court about the debt repayment on November 15. However, the case was postponed as the court needed HiPP to confirm the statement.
The Supreme Commercial Court ruled in June to enforce the Austrian court's judgment awarding HiPP GmbH and Co. Export KG 5 million euro in its suit against SIVMA and SIVMA Baby Food.
HiPP and SIVMA Baby Food entered into a distribution contract on July 6, 2005. HiPP committed to supply ordered baby food products to SIVMA Baby Food while the latter was obliged to pay for food supplies in time and then to resell it. Furthermore, HiPP, SIVMA Baby Food and SIVMA concluded a three-party guarantee contract on November 6, 2006.
SIVMA committed to share responsibility with SIVMA Baby Food for full or partial default in contractual obligations.
The claimant filed a lawsuit with the Austrian arbitration tribunal after the food distributor failed to pay for food supplies in the period between July 2, 2007 and November 20, 2007. SIVMA Baby Food admitted the debt.