Debt-laden Russian baby food producer Nutritek is urgently seeking ways to escape bankruptcy and has postponed its secondary share placement, while working on an emergency plan.
"The board … has entrusted the management with working out within two weeks an emergency plan aimed at avoiding the company's bankruptcy and restoring its solvency," it said.
The company's bank accounts are frozen following a 10.8 million rouble ($368,300) lawsuit filed by one its creditors, who had not accepted its restructuring of the bulk of $210 million in overdue loans.
The restructuring allowed its creditors to get the majority of votes on the company's board.
The firm, which competes locally with Danone, Nestle, and Wimm-Bill-Dann, had planned to raise around $100 million through a secondary share placement to improve its financial state, sources had said.
But its board of directors has decided to postpone the share issue, Nutritek said late on Thursday.