Posted: 8 months ago

Bank of Georgia Acquires "Elmavalmshenebeli" Factory for 19.5 Million GEL After Repeat Auction

The "Elmavalmshenebeli" factory, located on Guramishvili Avenue in Tbilisi, has been purchased by the Bank of Georgia for 19.5 million GEL after a repeat auction.

According to the National Bureau of Enforcement, the factory's assets were worth 97.6 million GEL, resulting in an 80% discount on the sale.

The "Elmavalmshenebeli" factory was auctioned off due to unpaid debts, including a credit debt of 15 million GEL to the Bank of Georgia and a debt of 20 million to other creditors, as confirmed by the Tbilisi City Court's judgment on January 9.

The Bank of Georgia issued a statement regarding the purchase, stating that the acquisition was made to protect the creditor's interests and was in full compliance with current legislation. The Bank of Georgia was the creditor and the auction was the only way to recover its debt.

The "Elmavalmshenebeli" factory was previously owned by the Russian company "Loco Trans," which held an 87% share, while the National State Property Agency owned 12%.

Last week, the Tbilisi City Court authorized the National Register of Securities to register a share transfer agreement between "Loco Trans" and the company "Tbilisi Transfer" for the purchase of "Elmavalmshenebeli" for 2 million dollars. However, the director of "Tbilisi Transfer," Irakli Chitanava, stated that they will appeal the sale of the plant's assets through auction in court.

Founded in 2015, "Tbilisi Transfer" is a company and its director and 100% shareholder is Irakli Chitanava.