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Ceturtdiena 17.08.2017 | Name days: Oļegs, Vineta

Minister: Liepājas metalurgs shareholders did not hand over their shares

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Author: Edijs Palens/LETAContrary to the previous announcement that Liepājas metalurgs shareholders Sergei Zakharin and Ilya Segal have, indeed, handed over their shares, this did not happen, Finance Minister Andris Vilks said after a government meeting on Tuesday, August 20.

Shareholders’ proposed contracts were tampered with. Therefore, the state cannot accept them.

Today, the government decided that it should continue the approval of the company’s legal protection plan.

“As it had happened multiple times in the past, shareholders allegedly hand over their shares, but the agreements they handed in were tampered with and the conditions they stated in them are not acceptable for the state. This shows once again that the fate of Liepājas metalurgs does not interest them at all. The only thing they are hoping for is for some state or investor to come by and invest money in LM, so that they can take some more for themselves,” – said Vilks.

Finance Minister notes that the government has made the decision to continue working on the legal protection plan’s approval. On top of that, LM still needs an investor in order to get back on its tracks.

“Investors wait for the aforementioned shareholders shares to become available. We see that it is within the interests of investors to have the plant fully functional. The question is whether or not these shareholders will stop acting as though they are trying to save the company. Such behaviour is unacceptable – they only continue to fool the public by coming forth with new lies,” – Vilks said.

He added that there has been no cooperation with them and it is unlikely for there to be any in the future.

When asked whether the state has any instruments in play that would allow the state to take away the shares if they do not want to willingly hand them over to the creditors club, partner of Prudentia Advisers Karlis Krastins said that Latvia is a country governed by laws and that it is impossible to forcefully take away someone’s property.

When asked if the legal protection plan provides for the possibility of LM’s current shareholders to remain in the company and try to help the company get back on its feet, Finance Minister Andris Vilks merely shook his head. Krastins, on the other hand, noted that the plan does not include taking away a person’s shares. Nevertheless, the core idea of the plan is to have shareholders hand over their shares either to creditors or investors.

“The shareholders’ only purpose right now is to cling to their shares. Shares are worth nothing right now because the company is insolvent and does not manufacture anything. With that, shares are but an instrument that allows them to play their parts. They have already lost the company but still use the holes in Latvian legislation for some unknown purpose,” – Krastins said.

“The two shareholders were prepared to hand over their shares only under the condition if the legal protection plan was working flawlessly to help LM get back on its feet – they wanted to have others for in their place. It is illogical. The deal cannot go down under such conditions,” – he added.

Krastins concludes that it would be no longer necessary to take away anything from those shareholders if the company ends up insolvent, because that would make them the least important matters to tackle.


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