bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 24.04.2017 | Name days: Nameda, Visvaldis, Ritvaldis
LatviaLatvia

KVV Liepājas metalurgs plans to pay former employees EUR 800,000

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUConsidering shareholders’ decision to freeze all activities of KVV Liepājas metalurgs, the company will soon carry out a personnel audit soon in order to acquire a full picture as to the number of employees that will be necessary to maintain the company’s infrastructure during the period of non-action.

KVV Liepājas metalurgs board chairman Igor Talanov has confirmed that approximately 300 employees of the company may receive a notification regarding the termination of labour relations. With that, the company plans to pay more than EUR 800,000 to former employees.

The reduction of the number of employees will be carried out in accordance with legislation. Each employee will be informed of the decision to terminate job relations within 30 days in advance.

The company will comply with all requirements in regards to additional expenses related to aspects like unused vacation days, emphasizes Talanov. According to him, this decision has already been coordinated with the management of KVV Group.

BNN had previously reported that KVV Group has decided to freeze assets of KVV Liepājas metalurgs. «This decision was made, considering standing long-term negative factors that prevent the company’s function – crisis in the world metallurgy market, outstanding debts before creditors and the lack of interest from the state to support the industry,» – notes the company.

In recent months, shareholders of the company tried their best to restore production and establish a constructive dialogue with the government in spite of difficulties. Shareholders developed a restructuring plan for the company’s debts and waited for a reasonable response from the government in regards to the application of a reduced mandatory procurement component, as reported by the company.

«Our decisions were driven by the belief that shareholders and the state have a single goal – to preserve one of the largest tax payers in the country, develop the metallurgy sector and black metallurgy processing industry, as well as maintain jobs for hundreds of people,» – notes KVV Liepājas metalurgs board member Igor Talanov.

«Unfortunately, what we received was the distancing of state officials from problems in the company. The number of questions asked in the letter of the State Treasury and openly negative statements addressed to the proposed restructuring plan even before its review made it difficult for shareholders to understand when it may be possible to find an appropriate dialogue with the government,» – said the company’s representative.

According to him, KVV Group’s investments department had organized an independent audit at KVV Liepājas metalurgs in November 2015. Results of this audit showed that the company’s worth in 2015 was significantly lower than its procurement worth.

On 1 March, KVV Liepājas metalurgs submitted its business restructuring plan to the State Treasury. The government had requested this plan at the beginning of February. This plan details the repayment schedule of KVV Liepājas metalurgs’ debt of EUR 70 million.

On Friday, 19 February, Latvijas Gāze’cut off gas supply to KVV Liepājas metalurgs, as confirmed by LG. This decision was made following the company’s inability to pay off its debts for previous gas supplies.

Because the debt remained unpaid on Thursday, 18 February, KVV Liepājas metalurgs’ total debt kept increasing and continues to increase. In addition, KVV Liepājas metalurgs has not yet signed an agreement in regards to gradual repayment of the debt.

Ref: 102.109.109.6373


Leave a reply

Week in Lithuania. Imports from Belarus' Astravyets NPP restricted

Seimas on Thursday, April 20, adopted a bill to restrict electricity imports from the Astravyets nuclear power plant under construction in Belarus and other unsafe nuclear facilities in third countries.

Wider economic cooperation between Latvia and Singapore planned

As reported by Finance Ministry, work will be performed to establish wider economic cooperation between Latvia and Singapore, both in the field of tax administration and investments.

Lange: poor road quality causes drivers to lose more than one billion euros every year

Poor road quality in Latvia causes losses for drivers worth more than one billion euros every year, announced Janis Lange, chairman of Latvijas valsts ceļi, at an annual conference on Friday, 21 April.

Latvia and Lithuania continue work on single gas market’s development plan

Latvia and Lithuania continue working on single gas market development plan, BNN was told by Latvian Economy Ministry.

Belarus values Latvia’s experience developing e-management

Belarus values Latvia’s positive experience in development of e-management. Constructive cooperation in this field has provided residents in Latvia and Belarus with cheaper roaming tariffs and improved mobile broadband development, as reported by Environment Protection and Regional Development Ministry.

Poor skills in digital technologies can reduce one’s competitiveness on the market

Only 2% of board members in Latvia’s leading retail trade companies have skills working with digital technologies. The same applies to 6% of board members in transport and logistics companies, 4% - in energy companies and 0% in manufacturing companies, according to results of a study performed by personnel selection company Amrop.

Government decides not to support Ventspils’ involvement in Nord Stream 2

This week, Latvian government decided behind closed doors not to support the involvement of Ventspils Freeport in the Nord Stream 2 project, according to publicly available information.

Estonia to invest millions in IT and technology business development in regions

Close to 160 million euros are planned to be invested in developing the sector of information and communications technologies in Estonia outside larger cities, according to a state budget strategy for 2018-2021 by the Estonian government.

Bite buys Unistars and gains access to 5G frequency

Mobile communications operator Bite has bought telecommunications company Unistars, making a major step towards introducing 5G network in Latvia, as reported by Bite manager Kaspars Buls.

Study: Latvian businessmen feel threatened the most by increasing tax burden

Nearly all Latvian CEOs expect competition to grow in the future. In addition, this will happen in conditions of deficit of qualified workers, according to results of a study performed by PricewaterhouseCoopers.

Court in Russia bans Jehovah's Witnesses as extremist organisation

The Supreme Court of Russia has accepted a request by the country’s Justice Ministry to term Jehovah's Witnesses as an outlawed religious organisation - best known for going door-to-door looking for new converts -, considering it to be an extremist group.

Progress in the realization of insolvency reform in Latvia

New regulations listed in the Insolvency Law provide for increasing the role of creditors in the choice of figures supervising legal protection processes, as well as enhancing the work of administrators in supervisory institutions – expanding the capacity and authority of the Insolvency Administration in performance of supervisory functions and raising qualifications of employed administrators, as reported by Justice Ministry.

Demand for Barbie considerably down in Europe and North America

The overall sales of Barbie dolls have fallen 13%, world's largest toy company, American manufacturer Mattel has stated.

Weather in Latvia to be windy and rainy for the next couple of days

The end of this week and beginning of the next will be windy and rainy in Latvia, as reported by the State Environment, Geology and Meteorology Centre.

Lithuanian MPs deal with smut resolvedly, but is it sign of parliamentarian transparency?

If the Lithuanian lawmakers’ adhering to law and ethics was to be judged by the events from the last couple of weeks, one could conjure up an impression that the Lithuanian legislature is one of the most transparent around – and a whole lot such than the previous parliamentary term.

Riga International Airport will have a new air traffic control tower

Latvijas Gaisa Satiksme promises that Riga International Airport will have a new, modern air traffic control tower in 2013.

Lembergs will fight for his «warm seat» in the mayor’s office

Aivars Lembergs intends to participate in upcoming municipal elections in Ventspils as a mayoral candidate from his party – For Latvia and Ventspils.

Latvia’s financed loan volume increased by 72 million euros in Q1

In Q1 2017, loans worth more than EUR 94 million were issued through Latvian loan platforms, according to data compiled by Latvian Association of Alternative Financial Services.

Number of passengers carried by airBaltic grows 12%

Latvian national airBaltic airline carried 224,921 passengers to destinations in Europe, Scandinavia, Russia, CIS and the Middle East in March. This means a 12% increase in comparison with last year, BNN was told by the airline.

Birth rates in Latvia 6.9% behind previous year

Compared to the same period one year ago, 365 children fewer were born in Latvia in Q1 2017, which means a drop of 6.9 %.

Study: Latvia has become one of the centres for Russian organized crime

Russian organized crime groups, which often have ties to Kremlin, have varied their activities in Europe, including Latvia. This is why European institutions should consider them more of a security, not crime problem, as concluded in a study by British researcher Mark Galeotti* published by European Council on Foreign Relations.

Estonian state securities’ fund increases profits to 1.2 million euros

The gross revenue of the Estonian state securities and business support fund Kredex grew 16% reaching 7.1 million euros last year, while profits rose to 1.2 million euros, which is a 20% increase.

New CEO of Riga Freeport to have a major wage increase

Riga Freeport authority plans to announce a personnel selection process to find a new CEO for the Freeport, said Mareks Gailitis, advisor to chairman of the board of Riga Freeport Andris Ameriks.

20 asylum seekers resettled from Greece to Latvia

As part of the European Union’s resettlement programme, twenty people were relocated from Greece to Latvia on Wednesday, 19 April. Ten of those people are children, as reported by Office for Citizenship and Migration Affairs.

Estonia to impose banks with 14% advance income tax

Amending the Estonian income tax system, the country’s government has decided to push for a 14-percent advance income tax on banking institutions’ profits.

Newest comments