Latviski English По-русски
Wednesday 22.01.2020 | Name days: Austris

Court declares Latvian cosmetics manufacturer Dzintars insolvent

(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

Raimonds Vējonis elected as president of Latvian Basketball Association

On Tuesday, 21 January, former president of Latvia Raimonds Vējonis was elected president of Latvian Basketball Association, as reported by Latvian public media portal

Spain’s powerful storm turns tragic

In Spain, a powerful storm has brought flooding, low temperatures and violent winds to the country’s eastern coast, where four people died according to the BBC and local authorities.

Riga City Council opposition sees no reason to sign for Oļegs Burovs’ dismissal

Political parties representing the opposition in Riga City Council have no plans at the moment to start gathering signatures to have the city council’s chairman Oļegs Burovs dismissed, because they believe the Saeima will soon vote for the entire city council’s dismissal in the coming weeks, interviewed politicians admit.

Courts in Russian cities evacuated over bomb threats

In Russian cities of Moscow and St. Petersburg, 11 courts have been evacuated after e-mailed bomb threats were received, Russian state news agency TASS reports. This far, the threats have been unsubstantiated

Minister: a wider range of candidates to lead State Police would benefit society

Having a wider range of potential contenders to lead Latvian State Police would be in society’s interests, said Interior Affairs Minister Sandis Ģirģens in an interview to LTV programme Rīta Panorāma on Tuesday, 21 January.

LZP regional faction urges talks to discuss splitting from ZZS

Latvian Green Party’s Cēsis faction believes the party should discuss the possibility of splitting from the Union of Greens and Farmers, as reported by newspaper Latvijas Avīze.

Swedbank predicts 2.2% economic growth for Latvia in 2020

Latvia’s national economic growth in 2020 will rely on private consumption. Overall growth is expected at 2.2%, according to Swedbank chief economist Liva Zorgenfreija.

U.S. impeachment court begins against Donald Trump

In the Senate of the U.S. Congress, the impeachment court is scheduled to begin on Tuesday, January 21, aimed at establishing whether or not U.S. President Donald Trump is guilty in charges related to his foreign policy on Ukraine.

IMF cuts global growth forecast to world economy in 2020

The International Monetary Fund (IMF) has lowered its economic growth forecast for world economy in 2020.

Climate-devoted Davos forum to host conflicting views of Thunberg and Trump

In Davos, Switzerland, the World Economic Forum starts on Tuesday, January 21, with a focus on economic changes to turn to sustainability. Among the speakers there are U.S. President Donald Trump and Swedish climate voice Greta Thunberg.

Latvia commemorates journalists of the Barricades

«Every year on 20 January we gather at the Saeima to commemorate the Barricades of 1991 – the days of protection of Latvia’s freedom. Today all of Riga smells of barricade smoke, of freedom. I believe the fires of freedom lit in commemoration of this day will still be lit year after year from now. Most importantly we cannot let these fires die out in our memory,» said Saeima speaker Ināra Mūrniece in a speech addressed to journalists of the Barricades.

Even Jūlijs Krūmiņš’s penalty is not enough to pull state funding from ZZS

The fine enforced by the office of the prosecutor on businessman Jūlijs Krūmiņš does not provide for terminating payment of state funding for the Union of Greens and Farmers, as reported by the Corruption Prevention and Combating Bureau.

Kariņš: coalition objects lowered requirements for State Police chief candidates

The ruling coalition in Latvia objects against lowered requirements for candidates who want to become the next chief of State Police, not the organization of a selection process, said Latvia’s Prime Minister Krišjānis Kariņš after a coalition meeting on Monday, 20 January.

Last year’s accomplishments in Latvia’s healthcare

In regards to the accomplishments in healthcare observed over the course of 2019, Latvian Healthcare Minister Ilze Viņķele mentioned the cancellation of the initially planned adoption of the two-basket healthcare system and the signing of the agreement for a transition period until 2021, as reported by Healthcare Ministry.

Estonian language inspectors ask Hesburger to translate its «drive-in» signs

Estonian language watchdog has required Finnish fast food chain Hesburger to translate its English language «drive-in» signs into Estonian as the current practice of the company violates the Language Law of the Baltic country.

Minister: Rebenoks is one of the winners of Latvenergo council members selection process

The decision regarding approval of the new Latvenergo council, to which is planned to delegate Latvian Economy Minister Ralfs Nemiro’s advisor Pāvels Rebenoks, could be made by Economy Ministry’s state secretary, said Nemiro.

Railway freight volumes in Latvia drop 15.8% in 2019

When compared to 2018, railway freight volumes in Latvia had declined 15.8% in 2019. Total railway freight volumes reached 41.492 million tonnes, according to data from the Transport Ministry.

UN: Illegal for countries to send back climate refugees

UN Human Rights Committee has found that it is illegal for countries to send refugees to their home countries if their lives or welbeing is in danger at home.

18 589 thousand children born and 12 913 marriages signed in Latvia in 2019

In Latvia, birth number has been declining for four years in a row. 18 589 births were registered in 2019, which is 725 births fewer than in 2018.

Kaimiņš invites KPV LV to decide on party’s liquidation during congress

KPV LV does more bad than good for the country now and is beyond saving, said the party’s founder, Saeima deputy Artuss Kaimiņš in an interview to Latvijas Radio, inviting members of the party to decide on its liquidation at the upcoming congress.

Krūmiņš and Raitums receive fines for illegal financing of ZZS and For Latvia from the Heart

At the end of 2019 Businessman Jūlijs Krūmiņš and financial consultant associated with him Jorens Raitums both agreed to pay EUR 100 000 fine for using third parties to gather money for the Union of Greens and Farmers and For Latvia from the Heart, as reported by TV3 programme Nekā personīga.

Estonian producer price index decreased in 2019

Estonia’s producer price index of industrial output decreased from December 2018 to December 2019 by 1.2%, the country’s official statistical body Statistics Estonia estimated.

Justice Minister: Bičkovičs might pick prosecutor general candidate before amendments

Ivars Bičkovičs, chairman of the Supreme Court of Latvia, may be able to perform some manoeuvres to pick the most appropriate candidate for the post of prosecutor general before amendments aimed at changing the order candidates for the aforementioned position are picked come to force, said Latvian Justice Minister Jānis Bordāns in an interview to newspaper Latvijas Avīze.

Estonian minister stresses immigration’s dominance in population growth

In Estonia, where statistics expect the 2019 to have been the fifth consecutive year of population growth, the Population Affairs Minister has pointed to current foreign immigration rate exceeding the country’s aim of foreign immigration.

Programme: minister wants state secretary gone over an objection

Prior to major changes in Latvenergo’s council and board, the company’s current supervisor and Economy Ministry’s state secretary Ēriks Eglītis may lose his post. It is worth mentioning that he objected to providing Economy Minister Ralfs Nemiro’s once boss Pāvels Rebenoks an official post, as reported by TV3 programme Nekā personīga.

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