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Saturday 23.09.2017 | Name days: Vanda, Veneranda, Venija
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PM: Liepājas metalurgs' shareholders do not seem interested in solving problems

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Valdis Dombrovskis

Valdis Dombrovskis

The most realistic method of saving Liepājas metalurgs from insolvency would be the attraction of investors, says Prime Minister Valdis Dombrovskis.

In his interview to 900 seconds programme of LNT, Dombrovskis admitted that the owners of LM are not ready to fulfil the demands set by creditors. If these demands are met, it will be possible to think about providing support to the company.

Given that the owners are some of Latvia’s millionaires, Dombrovskis said the announcement of LM’s shareholders about them not having the requested 25 million LVL is odd.

In addition to that, the PM is disappointed in the actions of LM. Specifically the payment to one of the company’s creditors without having set clear the criteria by which the company chooses which obligations are to be cleared.

Dombrovskis admits that he does not see any shareholders’ interest in solving the company’s problems. At the same time, the PM avoided answering the question whether the state plans to save LM if the company fails to find an investor.

As the Economy Ministry reported on April 23, the Cabinet of Ministers has approved the creation of a working group that would coordinate the necessary measures to resolve the situation with LM and improve the business and employment situation in Liepaja.

The group is to be managed by Economy Ministry Daniels Pavluts and will also have Finance Minister Andris Vilks, Welfare Minister Ilze Vinkele, Chief of the State Treasury Kaspars Abolins, Chairman of Liepaja City Council Uldis Sesks, Environmental Protection and Regional Development Minister Edmunds Sprudzs, Justice Minister Janis Bordans and Dombrovskis’ advisor Sandra Bukane.

The state has been actively involved in the past, and has been providing help to LM within its competency. However, the state is not a shareholder of LM and it is unable to influence the management of the private company and business solutions. This is why further actions depend on the current shareholders and professional business management of LM, as well as suppliers and creditors. A complex solution is necessary in order to stabilize the situation. In order to reach this goal, all sides should cooperate, the ministry states.

The state and the creditors have set five specific requirements that the current shareholders and managers of LM are expected to complete. Only after completing these requirements and submitting a strategic plan to the Creditors club, the decision about further actions will be made. The Creditors club retains the right to set new requirements for providing support.

Ref: 102.109.109.7056


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  1. JPR says:

    Bankrupcy next?

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