Kemeri Sanatorium to go to auction

RIGA - The property of the insolvent Ominasis Latvia, including the Kemeri Sanatorium, will be sold at auction on Sept. 24, insolvency administrator Ainars Kreics said in a statement to the media, reports Nozare.lv. The starting price of the company’s property will be 3,905,901 lats (5.5 million euros), which will be partly applied to value added tax. This will be the first auction of Kemeri Sanatorium.

The auction will be held at 1 p.m. at Antonijas Street 7-2, in Riga.
The Finance Ministry’s Communications Department Director Aleksis Jarockis told Nozare.lv earlier this week that the Jurmala City Council had not submitted information on the necessary financing needed to maintain the Kemeri Sanatorium over the next several years, as well as its vision, together with financial calculations, on how the sanatorium would be utilized.

Kreics, in an effort to prevent Ominasis Latvia property from depreciating and due to conditions set by the Municipal Loan and Guarantee Control and Supervision Council, has decided to organize an auction of the Kemeri Sanatorium.
This past July creditors of Ominasis Latvia, the company that previously privatized the Kemeri Sanatorium, decided to sell the sanatorium complex to the Jurmala City Council without going to auction. They unanimously agreed to sell the property to the Jurmala City Council for 4.6 million lats.

However, law firm Raidla Lejins & Norcous, representing Ominasis Latvia, said in a letter to the Jurmala City Council that the sale of the Kemeri Sanatorium to the Jurmala City Council without going to auction contradicts legal requirements and creditor interests.

The letter says that sale of the complex to Jurmala City Council and not at auction may go against the Insolvency Law and also Article 105 of the Constitution (property rights). In fact, the Kemeri Sanatorium has been seized without just and adequate compensation to the complex’s owners, believes the law firm.