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Sunday 17.12.2017 | Name days: Teiksma, Hilda
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Authorities sign contract on the sale of Liepājas metalurgs

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUInsolvency administrator of Liepājas metalurgs Haralds Velmers has signed the sale contract with Ukrainian KVV Group, as reported by KVV Group representative Inese Ozoliņa.

After the signing of the contract, Velmers admitted that this marked a significant step in the sale of LM. He added that he is happy that it was possible to find an investor and complete the deal ahead of schedule.

«We plan to work hard this month in order to provide the new owner of LM with the necessary properties to allow the company to restore its work as soon as possible. This is very good news for residents of Liepaja and Latvia’s national economy as a whole,» – said Velmer after the signing of the contract.

Owner of KVV Group Valery Krishtals called the signing of the contract the beginning of a bright future for the company. «I can confirm that the sale process of the insolvent LM was organized very professionally by the Latvian government. We will continue active work in order to restore the factory’s function as soon as possible. Best case scenario – this November,» – said Krishtal.

«In the first phase, we see the factory working in two shifts, producing more than 35,000 tons of products per month. The necessary number of workers is near 500, which will allow us to gradually increase production and take on new employees,» – explains the owner of KVV Group.

Current estimates suggest the state could recover the funds that were invested in LM from the state budget. On top of that, the first return payment is expected to cover the investments into the company’s sustenance after it went bankrupt. Other pledges are also planned to be realized. For example, the State Treasury has received EUR 768,000 from the realization of the medical-sanitary department.

The investor has paid EUR 1 million as proof of serious intentions. After the completion of the sale, all further payments will be divided into ten years – with annual payments of EUR 9 million each.

As previously reported, the rights to purchase the main factory of the insolvent Liepājas metalurgs company have been provided to the Ukrainian KVV Group, as announced by LM insolvency administrator Haralds Velmers.

Talks in regard to the sale of LM have been progressing with only two potential buyers since August 2014 – KVV Group and United Group.

By investing approximately EUR 30 million of turnover funds, Ukrainian KVV Group plans to restore Liepājas metalurgs functionality by the end of 2014, as reported by the owner of KVV Group Valery Krishtal.

It is planned that LM will be producing metal fixtures for KVV Group and exports.

The purchase of LM will allow the company to realize its long-term strategy to ensure the company’s full functionality – from production of raw materials to their use in construction, explains Krishtal.

Ref: 102.109.109.5835


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