We signed the investment agreement in mid-September and paid 50% of the investment amount. It came as a total shock when Nurgazy asked for a loan of $100,000 the same month. I was not expecting this.

On October 1, 2008, I wrote to him, explaining why asking for a loan so soon was not a good idea. I was already approaching EU and other organisations, to introduce Trilight and eventually apply for funding or work as a joint venture partner. I explained to Nurgazy that if the company borrowed $100,000, it would have a high level of debt compared to equity. It would make the business look really unappealing. I also wrote “if we take an emergency loan of $100 000 so soon after finalising the contract, it will clearly show lack of planning and financial discipline. Do you think investors will be comfortable with investing in a business where things are not planned? I understand there are opportunities available in the market now, opportunities come and go all the time. Please don’t just look at the short term. Look at the bigger picture – expanding Trilight…”

I further wrote “we have taken a risk to set up business in Kyrgyz. We want to work together with you to do things properly so that we gain confidence of European institutions who in turn can support us in future. I am spending a lot of time and money trying to create this opportunity. Visiting investors around the world, making presentations etc is not cheap and easy. There is no other bakery/biscuit company in Kyrgyzstan that has someone doing this for them. If we get support of foreign institutions we will have a huge advantage over all our competitors.”

My explanations did not matter. Nurgazy continued to put pressure on me, to give him a loan.

Nurgazy said he needed $100,000 to purchase the following:

• Generator – $21,000
• Boilers – $2,000
• Glazing machine or coating apparatus or enrober – $15,000 (50% now)
• Ovens – $5,000
• Mixers – $2,000
• Inventory – $3,000
• Freezer – $2,000
• Shock freezer apparatus – $7,000
• Tempering boiler – $3,000
• Grinder – ?
• Homogenizer – $5,000
• Racker – $10,000 (50% in November and the rest in December)
• The other 50% for the glazing machine – $7,500
• Building for freezing chamber – $20,000

We never gave Trilight a loan. Even without the loan, Trilight continued to grow.

Note: A criminal case is currently open. These are two most recent letters I received from the prosecutor.

уведомление

Opening of Criminal Case March 2018

Next article: Awkward Meeting at Prego

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