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Ceturtdiena 24.08.2017 | Name days: Boļeslavs, Bērtulis
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Creditors offer to purchase Liepājas metalurgs for 3 LVL; shareholders yet to reply

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Аuthor: Evija Trifanova/LETAOn Tuesday, May 7, the largest shareholders of Liepājas metalurgs (LM) – Sergei Zakharin, Ilya Segals and Kirov Lipman – are expected to submit their reply to the offer of LM’s creditors to sell their shares – a total of 93% – to the largest creditors or their representatives for 1 LVL each.

This offer was stated in the letter sent to the shareholders by Prudentia financial consultant on May 3.

It is stated in the letter that shareholders are to submit their written reply to Prudentia‘s Riga bureau before 12 o’clock May 7.

The letter states that an agreement needs to be reached in regard to the shares that are being fought over in litigation between Zakharin and Lipman. These shares, according to Prudentia, need to be handed to the creditors as soon as possible. Zakharin, Segals and Lipman could retain one share each. This would ensure their rights to participate in the further increase of LM’s capital. Following the sale of the shares, Zakharin and Segals would be required to make sue LM elects a new Board from the chosen individuals of the largest creditors and resign.

It is also stated in the letter that any financial bail-out measures by creditors are only possible under the condition that LM’s Board is to be replaced for a new, professional and independent team. This would only be possible if creditors were to receive control over the process of electing the council majority.

The current shareholders that do not participate in LM financial aid measures are prohibited to benefit from measures used by creditors, especially given the fact that the state and the state’s 100% owned Latvenergo are among the creditors, mentioned in the letter.

By completing the conditions stated in the letter, Prudentia‘s represented creditors would restore regular function of LM, as well as initiate legal protection process to prevent the company from going insolvent.

As part of the legal protection process, creditors plan to increase LM’s capital. If Zakharin, Segals and Lipman see any opportunity to participate in increasing the capital with new funds, creditors ask to mention the potential amount of money.

The largest creditors of LM are Latvenergo, Citadele bank, SEB bank, Stemcor and State Treasury.

Ref: 103.109.109.7170


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  1. JPR says:

    Bankrupcy next?

    Thumb up 0 Thumb down 0

  2. Henris says:

    3 lats for a companie that worth nothing .Isnt it a good deal.

    Thumb up 0 Thumb down 0

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