The firm’s most popular product was once Pohmu hangover powder.A photo: Andras Kralla/Business Day
Vitamin maker Medical Pharmacy Group or Meravita is awaiting reorganization. The major owner of the company is Sven Uusjärv, who is associated with the scandalous organization Investoriteliit.
The Meravita rehabilitation plan was prepared in the spring. According to Tarmo Willman, the company’s reorganization adviser, the vast majority of creditors approved the plan, but one of them did not like it, and he went to court.
The District Court sided with the creditor and Meravita decided to appeal to the State Court. Now the future of the company depends on him.
Debts reach almost 1.8 million euros
The company has 108 creditors, including the Tax Department. The total amount of Meravita’s debts reaches almost 1.8 million euros, and most of them are the claims of investors who have invested money through loan agreements.
In Meravita, financial difficulties are explained by coronavirus restrictions and a decrease in demand. In addition, the company had to cut employees, which directly affected sales.
In June 2021, the Tax Inspectorate arrested Meravita’s settlement accounts in four banks, in connection with which the company’s partners had to send money to the inspectorate’s account. The accounts were released only when the plan for reorganization was drawn up.
Investors will have to wait
The plan provides that the principal amount of the debt will be paid to creditors in full, while the side claims are cancelled.
The rehabilitation program is designed in such a way that its implementation takes seven years, and payments to creditors will begin only two years after the court approves the rehabilitation. Simply put, investors will potentially start receiving their money only in 2025.
The payment of the principal amount of the claims will be spread over the next four years: 10% will be paid in the first year, 20% in the second, 30% in the third, and 40% in the fourth.
Lenders will also receive interest, which will be calculated from the balance of the main requirement and amount to 3% per year. Interest, however, will be paid only after Meravita has fully repaid the underlying creditors’ claims.
The plan also does not exclude the bankruptcy of the company, in which case the creditors will receive only a small part of the invested amount. Medical Pharmacy Groupile’s only assets are its existing equipment, inventory and intellectual property.
There is no hope
According to the reorganization plan, Meravita’s largest creditor is UGR Varad OÜ, which provided the company with a loan of 150,000 euros.
Board member Urmas Grauen believes that the current plan is unrealistic and the forecasts are incorrect.
“The original version was probably written by the owners of Meravita and not by the actual leader of the process. Both technically and financially, the plan was wrong,” he said, noting that he was not the creditor who sued the company.
Grauen is also dissatisfied with the latter; spring version of the rehabilitation plan: “This is unrealistic! What is the point of making this plan if it is impossible to carry it out.
DSD OÜ loaned 12,000 euros to a vitamin manufacturer. The owner of the company Alexander Samoylenko believes that he will not receive a single cent during the reorganization. According to him, even good contracts do not protect the investor from possible losses.
Twice as much, or 25,000 euros, Meravita will have to return Velburg OÜ, which filed for bankruptcy against the company last year.
Andres Rõõmus, a member of the board of the industrial company, says that he wanted to put pressure on Meravita and get his money back. When this did not happen, the entrepreneur withdrew the application and is now applying for a refund under the rehabilitation plan.
However, he does not believe that it will be possible to return the invested funds.
Primary Owner: I feel responsible
According to Uusjärv, the reorganization is necessary to continue the company’s activities, combat the consequences of the coronavirus and protect creditors.
“The vast majority of creditors have approved the reorganization plan and wish us success. Now it is important to finalize the plan. This is what we are striving for,” he said, adding that he feels responsible to investors and plans to get out of the current crisis one way or another.
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