Tolaram Fibers ready to resume production

DAUGAVPILS (BNS) - Tolaram Fibers textile company is ready to resume production, according to representatives of the Tolaram Group.

"All parties involved have done everything required to resume production in Daugavpils," said Urmas Reimand from Tolaram Baltics.

Agreements have been reached with the government authorities, Daugav-pils local government and Hansabanka, but the largest TF creditor, Latvijas Unibanka, is still considering the presented proposals.

The Tolaram Group has already capitalized TF debts in the amount of $7.8 million and has undertaken the obligation to make another $3 million in equity disbursements.

Under the signed agreements, $450,000 will be used to buy raw materials necessary to begin the production. Part of the raw materials have already been delivered to Daugavpils.

The rest of Tolaram Group's investment into Tolaram Fibers consists of $550,000 letter of credit for the purchase of raw materials, a $250,000 cash injection and obtaining bank guarantees for the remaining investments of $1.75 million.

Since the beginning of the last year when Tolaram bought Daugavpils plant Dauteks, which now operates under the name of Tolaram Fibers, $8.6 million have been invested in the development, $6.7 million paid in taxes and $3.5 million paid to previous creditors.