bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 28.02.2017 | Name days: Skaidrīte, Justs, Skaidra
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

Second line of border fence to be erected by Hungary

Hungary has launched works to erect a second line of fence on its border with Serbia, Hungarian government announced on Monday, February 27.

Latvijas aptieka to gather previously bought pharmacies under its brand

Pharmaceutical company Olainfarm plans to add previously bought pharmacies to its owned Latvijas aptieka brand, according to information from Firmas.lv.

FCMC requests insolvency for Trasta komercbanka at court

Finance and Capital Market Committee has submitted a plea to Vidzeme District Court to find Trasta komercbanka insolvent, FCMC representatives say.

Healthcare Ministry hopes to attract doctors to work outside Riga using additional pay

Using single-time and monthly payments, Latvian Healthcare Ministry hopes to attract doctors to work outside of Riga.

Nekā personīga: FM promises cheaper life for Latvia; Lembergs objects

Finance Ministry promises cheaper life for Latvian residents. However, reduction of PIT would impact municipalities the most. Because of that, a situation has formed when Aivars Lembergs, the infamous Mayor of Ventspils accused of serious crimes, and Finance Minister Dana Reizniece-Ozola have come head to head.

Paulins steps down from his post in Latvijas Radio; criticizes NEPLP for lack of professionalism

Aldis Paulins, Chairman of the board in Latvijas Radio, has announced his decision to step down from his post in March.

Estonian company total profits down 10%, total sales – up 2%

The total profits of Estonian firms in 2016 have continued to decrease for the second year in a row and were 2.7 billion euros last year, which is a 10% fall, if compared to 2015.

RNP failed to notice that wrong companies were working on expensive contract

Rīgas namu pārvaldnieks failed to notice in time that the wrong companies were realizing a contract worth two and a half million euros. RNP made no efforts to make sure the companies that won the tender would tackle the realization of the order, as reported by De Facto programme.

Calendar of cultural events in Lithuania. Kaziukas Fair

BNN offers you a selection of cultural events in Lithuania for the week during February 27– March 5.

Opinion: Latvia and Lithuania share similar situations with grey economy

Latvia and Lithuania both have the same situation when it comes to combating the grey economy. This is because residents often justify the existence of envelope wages and other illegal symptoms, says the head of Lithuanian Free Market Institute Zilvinas Silenas.

Classic Nokia 3310 reissued

Almost 17 years after its original launch, Finnish company HMD Global has released a revamped version of the classic mobile phone.

Senate meeting to discuss RPIVA’s addition to University of Latvia

On Monday, 27 February, a Senate meeting will be held in the main building of the University of Latvia. During this meeting, it is planned to discuss the matter regarding the addition of Riga Teacher Training and Educational Management Academy to the university.

Mass protest in Moscow remembering slain Nemtsov

A Moscow memorial march of killed Russian opposition leader Boris Nemtsov has been attended by several thousand people.

Coalition partners do not oppose raising capital tax

Partners of the ruling coalition in Latvia have no objections against the possible labour tax reduction and capital tax increase.

Week in Lithuania. Lithuanian PM, Conservative leader hold unannounced meeting

The Lithuanian branch of Finland's OP Corporate Bank announced it will lend 19.69 million euros to the city of Vilnius, with the money to be directed towards refinancing of the municipality's earlier loans.

BNN summary of the week: less pay for overtime and citizenship for all in Estonia

BNN offers a summary of this week’s topical news in a variety of categories, including change, business, decline, truth, growth and future.

State Audit: Healthcare Ministry had no right to reveal RAKUS audit results

State Audit criticizes Healthcare Ministry for revealing facts from an audit report, as it is prohibited to publish information before reports come into force.

Piebalgs: UGF’s popularity is critically low, which causes concerns

«The popularity of the management of the Union of Greens and Farmers is critically low. This causes serious concerns. If we truly want things to change, politicians have to be dynamic and prepared to think outside the usual categories,» says Unity chairman Andris Piebalgs.

SFRS: young people express increased interest in becoming fire fighters

Youngsters tend to express interest in becoming fire fighters, said Chief of State Fire and Rescue Service Oskars Abolins told Rīta panorama, adding that this can be explained with increased wages.

Ex-KNAB officials: there was no reason to end the «oligarchs case»

Former officials of the Corruption Prevention and Combating Bureau believe the prosecutor’s office and KNAB had no reasons to end the so-called oligarchs case. Nevertheless, they are not surprised about this outcome.

Infrastructure in Kraslava and Ludza to be developed using EU finances

Central Finance and Contracting Agency and councils of Kraslava and Ludza have signed an agreement for the realization of a project co-financed by the European Regional Development Fund to develop infrastructure in regions and contribute to attraction of private investors, CFLA reports.

Poland «cleans» its army leadership from Soviet Era servicemen

In the Polish Armed Forces, around 90% of its highest servicemen have been substituted, as the country’s Defence Ministry performs was changes in the Polish army.

Balta: poor weather conditions significantly affect road quality

«In the first two months of 2017, we have received 59 insurance claims to cover losses caused low-quality road surface and more than EUR 20,000 has been reserved for compensations,» as reported by Balta insurance association.

GSK Latvia board member appointed as chairman of Children's Clinical University Hospital

Valts Abols has been appointed as the head of Children's Clinical University Hospital. For the past 20 years he worked in managing posts of GlaxoSmithKline Latvia pharmaceutical company, as reported by Healthcare Ministry.

Estonia celebrates 99th anniversary since declaration of its independence

On February 24, it is Estonia’s Independence Day, which commemorates the time in February 1918, when a short period of foreign power vacuum was used to declare the establishment of the Republic of Estonia.

Newest comments