Baltika, owned by Baltic Beverage Holdings, the joint venture between Carlsberg and Scottish & Newcastle, has filed for bankruptcy for its Belarusian brewer Krinitsa. The move is an effort to recoup some of the US$10.5m it has invested in the business, the local paper Vedomosti reported today.
The operation has been a problematic investment from the start. In 2001 Baltika and the Belarus government agreed that, in return for a controlling stake, Baltika would invest US$50m in Krinitsa. However, the Belarusian government went back on the deal and cut Baltika’s stake to only 30%. Baltika had at that stage already invested US$10.5m.
The Belarus government has since recently said it opposed foreign investments in Belarussian breweries altogether.
Initial bankruptcy proceedings are due for today in Minsk.
