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Sunday 17.12.2017 | Name days: Teiksma, Hilda
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Minister: internal conflict delays the saving of Liepājas metalurgs

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Аuthor: Evija Trifanova/LETAThe government cannot decide on helping Liepājas metalurgs (LM) financially while its owners fight with each other in meaningless internal conflicts, Economy Minister Daniels Pavluts says.

During the past several weeks, creditors and consultants have been working on different solutions to this situation. Among the possible solutions are: restructuring, additional investments from shareholders, as well as a new owner. However, before the government can decide whether or not it should help LM, shareholders need to make the first move, the minister told Latvian Radio in an interview.

According to Pavluts, the will of investors or shareholders to invest money in LM will show just how perspective they see this enterprise. If it does not happen, the only reason to save LM would be the preservation of jobs in Liepaja. In this case the government will need to assess whether the preservation of the company is truly the best way to help the people.

The minister allows for the possibility that another reason for LM shareholders to be passive is their internal conflict.

The Economy Ministry plans to assess the possible development scenarios with LM’s shareholders in the near future.

BNN previously reported that the government has not yet made a decision to get involved in the problems of LM. As stated by representatives, the government wishes for shareholders to play a larger role in problem solving. It is incredibly hard to come up with a positive solution to LM’s problems if its shareholders do not have a clear business plan, as well as the will to get involved in problem solving, Finance Minister Andris Vilks said.

Pavluts admits – even though the problems of LM are a priority for FM and State Treasury, the EM will do everything in its power to make negotiations with the State Treasury, private creditors and LM to be as successful as possible and so that it would be clear that all institutions have done everything they could to resolve the problems.

It was also reported that Ernst & Young recommends creating a restructuring plan for the enterprise, one that would include optimization measures for the increase of the company’s profitability.

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  1. Ainars says:

    Liquid the company there is no other way.Then pay the workers a decent compensation they will move abroad for a better future and the problem is solved cheaply.

    Thumb up 0 Thumb down 0

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