KVV Liepā­jas met­alurgs to be auc­tioned off

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In­sol­vency ad­min­is­tra­tor to the bank­rupt KVV Liepā­jas met­alurgs Gun­tars Koris has de­cided to sell prop­erty owned by the com­pany at an auc­tion, as con­firmed by the ad­min­is­tra­tor’s rep­re­sen­ta­tive Dz­in­tars Hmieļevskis.

This de­ci­sion was made be­cause none of the con­tenders to pur­chase KVV Liepā­jas met­alurgs have com­plied with con­di­tions put up by cred­i­tors and have not pro­vided guar­an­tees that would demon­strate the abil­ity to buy the busi­ness as one whole and re­store its func­tion.

In ac­cor­dance with the In­sol­vency Law, the ad­min­is­tra­tor has made changes to the sales plan for the com­pany’s prop­erty. On 4 Jan­uary, the Lat­vian gov­ern­ment de­cided to give po­ten­tial in­vestors two weeks to make their de­ci­sion on the pur­chase of the com­pany. Econ­omy Min­istry Arvils Ašer­adens said that talks with po­ten­tial in­vestors have not ceased, it is just that in­vestors want more ben­e­fi­cial con­di­tions. At the same time, the gov­ern­ment is in­ter­ested in re­cov­er­ing as much pre­vi­ously in­vested money as pos­si­ble even though it is clear that it will not be pos­si­ble to re­cover the en­tire amount. Ac­cord­ing to him, the gov­ern­ment will wait for the po­ten­tial in­vestor’s de­ci­sion for two more weeks. Dur­ing this time the in­vestor will have to submit guar­an­tees and trans­fer fi­nances to ac­counts of KVV Liepā­jas met­alurgs’ cred­i­tors. If this is not done in two weeks, the gov­ern­ment will con­sider sell­ing the com­pany in sep­a­rate parts.

The min­is­ter also said that sev­eral po­ten­tial in­vestors have ex­pressed an in­ter­est in pur­chas­ing KVV Liepā­jas met­alurgs. «The in­vestor in ques­tion is the only one with whom ac­tive talks are un­der­way. Still, other in­vestors have ex­pressed an in­ter­est in KVV Liepā­jas met­alurgs as well. How­ever, we have yet to com­mence ac­tive talks with them,» added Ašer­adens.

When asked about pos­si­bil­i­ties for devel­op­ment of KVV Liepā­jas met­alurgs ter­ri­tory if the gov­ern­ment de­cides to sell the com­pany in sep­a­rate parts, the min­is­ter said that it is pos­si­ble to es­tab­lish an in­dus­trial park there. «It is pos­si­ble to de­velop an in­dus­trial park there, con­sid­er­ing ex­cel­lent in­fra­struc­ture. This would pro­vide an op­por­tu­nity to de­velop a new in­dus­trial zone in Liepaja,» said Ašer­adens.

In Novem­ber 2017, Ašer­adens said that KVV Liepā­jas met­alurgs’ po­ten­tial in­vestor voiced an in­ter­est in test­ing the com­pany’s fur­nace. It was ini­tially planned for the in­vestor to end the test on 19 De­cem­ber. Once re­sults would ar­rive, the in­vestor would an­nounce the de­ci­sion – to buy or not to buy the com­pany. How­ever, KVV Liepā­jas met­alurgs ad­min­is­tra­tor Gun­tars Koris’ rep­re­sen­ta­tive Dz­in­tars Hmieļevskis ad­mit­ted on 19 De­cem­ber that the po­ten­tial buyer de­clined the pre­vi­ously voiced re­quest to test the fur­nace.

AS K-1 Liepaja Me­tal­lur­gi­cal Plant was reg­is­tered in Latvia at the end of Septem­ber 2017. Ac­cord­ing to un­of­fi­cial in­for­ma­tion from LETA, it is a le­gal per­son that was founded to take over own­er­ship of KVV Liepā­jas met­alurgs prop­erty

Evija Tri­fanova/LETA

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