bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Sunday 15.12.2019 | Name days: Jana, Johanna, Hanna
LatviaLatvia

Court declares Latvian cosmetics manufacturer Dzintars insolvent

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Dzintars, Iļja Gerčikovs , Jānis Ozoliņš, cosmetics, insolvency, tax debtDzintars, Iļja Gerčikovs , Jānis Ozoliņš, cosmetics, insolvency, tax debtOn Tuesday, 12 November, Riga City Pardaugava Court declared Latvian cosmetics manufacturer AS Dzintars insolvent. Jānis Ozoliņš was appointed as the company’s insolvency administrator, as confirmed by the court’s representative Viktorija Mežance.

She explains that the insolvency process was initiated based on the report from insolvency administrator Mareks Diks. At the same time, legal protection process is terminated because it was found that Dzintars did not comply with requirements of the legal protection process plan of 25 April 2019 for longer than 30 days.

And so the court noticed signs of insolvency process as outlined in Part 1 of Section 57 of the Law on Insolvency. The court concluded that this is grounds for declaring an insolvency process for Dzintars legal person.

Mežance admits that the most notable creditor in this case was the State Revenue Service (VID), whose 11 October 2019 decision makes it clear that the tax administration does not agrees with Dzintars’ and VID’s submitted amendments to the legal protection process plan’s redaction of 20 September 2019.

There were several considerations at the base of the decision process. This includes the fact that Dzintars had not fully paid its tax fee – instead of the necessary EUR 1 764 574.60 the company paid EUR 273 239.60. This means the company’s tax debt is EUR 2 591 118.78.

Secondly, the total tax and other state compulsory fees debt of Dzintars has also increased – as of the day VID made its decision, the debt was EUR 6 815 743.17, although initially at the moment of approval of the legal protection plan the debt was EUR 3 457 067.03.

Thirdly, although multiple requests were put in, Dzintars has not submitted cooperation contracts, planned property sale project or other documents that would make it clear the company is able to perform payments outlined in the legal protection plan. At the same time, it was found that the company had failed to complete several requirements of regulations – the company has not submitted its profit or loss assessment with detailed explanations for every position. The company has also failed to submit its annual account for 2018, which would have provided a clear look at the company’s financial state, financial operations and monetary flow.

No evidence was provided that Dzintars has settled its commitments before creditors by the day of announcement of the ruling. The court also received no justified objections about the administrator’s request to the court, explains Mežance.

Diks had previously said that Dzintars’ prepared legal protection process plan’s amendments were not coordinated with creditors. This is why the administrator decided to submit to the court a request for insolvency process.

Dzintars board member Dagnija Maike had previously said that the company’s creditors did not agree to wait until the end of the year, when it is planned to sell the company’s production machinery and use the money from the sale to repay creditors.

«The production plant’s Soviet-era machinery is not needed. This is why it is planned to sell them. One of the possible buyers planned to arrive in November. The sale process itself would take some three months on its own, but creditors decided not to wait,» said Maike.

She adds that Dzintars is able to perform operations within much smaller space. Another option is building a new and more compact production plant.

Maike adds the insolvency process may conclude in remediation. «In any case Dzintars will not go anywhere, because the brand, trademarks and all patents as immaterial property are owned by [the company’s beneficial owner] Iļja Gerčikovs,» she said.

Information surfaced later on that AS Dzintars beneficial owner Iļja Gerčikovs has founded a new company – SIA Dzintars Beauty.

BNN had previously reported that in April 2018 Riga City Pardaugava Court decided to extend Dzintars legal protection process’s term.


Leave a reply

Aivars Lembergs leaves his post in Latvian Olympic Committee

On Friday, 13 December, individual member of Latvian Olympic Committee and member of its Executive Committee Aivars Lembergs announced to LOK board his decision to leave the organization, BNN was told by LOK press-secretary Mārtiņš Mālmeisters.

Ralfs Kļaviņš and Edvīns Bērziņš leave the board of Latvian Transit Business Association

Chairman of Riga Commercial Port Ralfs Kļaviņš and ex-chairman of Latvian Railway Edvīns Bērziņš have left the board of Latvian Transit Business Association, according to information from Firmas.lv.

US sanctions will not affect companies in which Lembergs no longer has any influence

The sanctions introduced by USA against Lembergs will not affect the companies over which he no longer has control thanks to a ruling of the court.

Liquidation of discount fares on multiple RMS routes would help save money for Rīgas satiksme

By liquidating multiple discounts for passenger fares on multiple LLC Rīgas mikroautobusu satiksme routes, LLC Rīgas satiksme public transport company hopes to save approximately EUR 1.75 million a year.

Tallinn region GDP portion decreases in Estonian economy

In 2018, 65% of the Estonian gross value added was created in Harju county, while the rest of the country is inching closed with Harju county, the official statistics of the Baltic country showed.

EU prolongs targeted sanctions against Russia over Ukraine

The European Union has extended for another six months its sanctions against Russia’s energy, finance and military sectors. The continued restrictive measures are said to remain in full until Minsk peace deal is implemented.

Local government representatives will no longer work at Riga and Ventspils freeport

Following the coming into force of amendments to the Law on Ports, representatives of Riga City Council and Ventspils City Council will lose their respective posts in the board of Riga Freeport and Ventspils Freeport, the law states.

Total tax debts in Latvia at December’s beginning – EUR 869.4 million

At the beginning of December, total tax debts in Latvia, including outstanding, halted and extended debts, were equal to EUR 869.367 million, which is 1.9% less than a month prior, according to data from the State Revenue Service.

In UK’s Brexit election, Conservatives win comfortable majority

In the British snap parliamentary election aimed at breaking the Brexit impasse, the ruling Conservative Party has won gaining a comfortable majority, according to close to complete results.

Riga City Council’s interim administration may be entrusted to VARAM state secretary Balševics

If the Saeima votes in favour of dismissing Riga City Council, the interim municipal administration may be entrusted to Environment Protection and Regional Ministry’s state secretary Edvīns Balševics, according to the ministry’s Riga City Council dismissal legislative draft to be decided on by the government on 17 December.

EU member states commit to 2050 carbon neutrality, Poland opts out

European Union’s 26 members, including the Baltic states, have supported the planned political course to considerably reduce the greenhouse gas emissions to net-zero by 2050. Coal-powered Poland said it could not reach the goal and opted out.

Latvia’s prime minister forms a work group to ensure Ventspils Freeport’s operations

On Thursday, 12 December, Latvia’s Prime Minister Krišjānis Kariņš has issued an order on formation of a work group under Transport Minister Tālis Linkaits in order to ensure undisrupted operations at Ventspils Freeport, as reported by the prime minister’s press-secretary Sandris Sabajevs.

Ministry: to prevent damaging Latvian sports sector’s reputation, Lembergs should leave LOK

To avoid letting US sanctions negatively affect Latvian Olympic Committee and spread to the reputation of the country’s sports sector, the ministry can only ask Aivars Lembergs step down as member of LOK Executive Committee, BNN was told by Education and Science Ministry.

Budget Committee declines residents’ request to postpone increasing funding for parties

Saeima’s Budget and Finance Committee has rejected a public initiative signed by more than 11 000 residents. This initiative requested postponing the planned increase of funding for political parties.

Lower election threshold in Lithuania – more democracy or chaos?

The Lithuanian legislature, Seimas, has lowered this week the parliamentary election threshold to 3 per cent for political parties and 5 per cent for coalitions.

Russia expels German diplomats, retaliating to German step over Berlin murder

Russia has asked two diplomats of the German Embassy to leave the country. This is a tit-for-tat measure after Germany declared two Russian diplomats personae non grata as Berlin investigates an international murder in the German capital, TASS reported.

Riga Freeport and Liepaja Special Economic Zone to leave LTAB

Riga Freeport and Liepaja Special Economic Zone will leave Latvian Transit Business Association managed by Aivars Lembergs, as both are subjected to US sanctions.

Lembergs’ influence over Ventspils Freeport needs to end, bank supervisors say

The goal of the US sanctions is reducing Aivars Lembergs’ economic and political influence over Ventspils Freeport and other companies under his control. Sanctions are not meant to paralyse companies, rather seeing how they are used to process deals influenced by the person under sanctions – Aivars Lembergs, said Finance and Capital Market Commission head Santa Purgaile during a press-conference on Thursday, 12 December.

USD 25 million offered in Weinstein sage to 30 alleged sexual abuse victims

In the U.S. movie industry scandal surrounding sexual abuse claims against film producer Harvey Weinstein his lawyers have offered a USD 25-million settlement to more than 30 women, The Guardian reports.

Legal Affairs Committee supports lifting judge immunity for administrative violation cases

Saeima’s Legal Affairs Committee supported prior to the second reading legislative drafts to the Law on Judicial Power and Law on Judges Disciplinary Liability intended to lift the immunity of judges in administrative violation cases, as confirmed by Justice Ministry.

Estonian-Finnish gas interconnection unveiled

Estonia and Finland have held ceremonies to unveil the gas pipeline Balticconnector, built to connect the gas transmission networks of both countries separated by the Baltic Sea.

Mārtiņš Kazāks officially becomes governor of the Bank of Latvia

On Thursday, 12 December, Latvia’s Saeima officially approved Mārtiņš Kazāks as the new governor of the Bank of Latvia, as BNN was told by Saeima’s press-service.

What is Ventspils Development Agency and what will its members do now?

Among the organizations against which US Department of Treasury Office for Foreign Asset Control has adopted sanctions is also Ventspils Development Agency. In accordance with OFAC issued Global Magnitsky General Licence Nr.1, global partners have 30 days to cease all cooperation with this organization.

Israel on way to third parliamentary election in year

Israeli legislators have been unable to overcome a prolonged political crisis. The Knesset has given its initial approval to the third parliamentary election in the Middle Eastern country in a year’s time after legislators proved unable to form a majority coalition.

Social Integration Fund torn over NGO support priorities

Although sides of the Social Integration Fund have argued over priorities of the Non-Government Organizations Fund, the contest to start using funding allocated to NGOs may yet be announced this year, allows Social Integration Fund council member and Prime Minister Krišjānis Kariņš’s representative Imants Parādnieks.


Do NOT follow this link or you will be banned from the site!