Mil temporary manager appointed,although some express doubt whether he is the right man

Published: 11/29/1999

The Moscow Arbitration Court has confirmed the appointment of Leonid Zapolsky as Temporary Manager of helicopter maker Mil, which is currently in administration (www.concise.org 17th November 1999), after a protracted battle among the plant"s creditors about who should run the Moscow-based company. An ex-military officer, Zapoldky is viewed as an unexpected choice by some of those looking at the Mil situation. They consider that Zapolsky"s lack of business experience will not help resurrect the plant from what could be a terminal financial condition. As always in Russia, in situations like this, there has been the usual flow of conspiracy theories, suggesting that Zapoldky is the agent of undisclosed interests intent on closing the plant, although for what benefit is never clearly stated. The evidence of skulduggery, in this case, is the fact that the first two-quarters financials prepared by an audit firm, appointed by Zapoldky, remain unfinished and the rumour has circulated that funds have been spent on ‘strange" operations. As most of this information in not supported, the observer must focus on the fact that the youthful Sergey Belagour was viewed as a good manager in tackling the plants problems. He also had the support of the government, in contrast to Leonid Zapolsky. Given the turns in the path of Mil"s bankruptcy, however, it seems unlikely that the saga is over.

Article ID: 1141