Financial Services, Latvia, Legislation, Markets and Companies, Metals Market

Velmers believes that a metallurgical company of such a size should not be sold at auction, and the law envisages the company may be sold without going to auction, by harmonizing the process with creditors. It would be an international tender, where the highest bids will be assessed as well as other proposals made by the bidders.

Liepajas metalurgs sales plan will be drafted by the middle of January. However, it will most likely not be possible to sell the company for LVL 130 million and settle all creditor claims, since the company's new owner will have to invest in restoring its operations and the amount of investments will be significant. Around LVL 30 million is required for the company to resume operations.

Liepajas metalurgs sale could take place in spring 2014 and its buyer will be interested to restore the company's operations as soon as possible, since each idle day will bring losses, explained Velmers.

According to Velmers, his goal is to restore the company's operations.

As reported, the Liepaja Court commenced Liepajas metalurgs insolvency process on November 12. Stock-taking is currently taking place at Liepajas metalurgs and an assessment of the company will be performed, based on the results of which, a sales plan for the company will be drawn up.