RIGA - The poultry farm and processor Putnu fabrika Kekava (Kekava) hopes that the State Revenue Service’s decision regarding the company’s complicated financial situation will be favorable: on Jan. 10, the Revenue Service was to decide on Kekava’s further existence and debt in the amount of 1.7 million lats (2.4 million euros); the fate of its 600 employees will also be at stake, the company’s executive director Aldis Skutans said, reports Nozare.lv.
“At the moment, Kekava continues its regular operations, hoping that the company will receive legal protection status to stabilize its financial situation. If there is even minimum support from the state and if the Revenue Service realizes what fate awaits Kekava’s in case of an unfavorable decision, good. If not, it is difficult to predict what will happen. It would be dramatic to lose 600 employees and one of the largest local food industry players,” said Skutans.
At the beginning of December 2011, Kekava owed the state 2.2 million lats. On Oct. 7, the company turned to the Riga District Court with an application for legal protection. The aim of the temporary legal protection proceedings is to restore positive cash flows so the company could continue to work.
Skutans, though, says that there have been positive trends in the company’s operations over the past few months. “According to previous preliminary projections, the company’s turnover in 2011 should have been around 19 million lats, which is 5 percent less than in 2010. However, there was a much more optimistic trend - October through December, where total turnover increased 6 percent from the same period last year,” noted Skutans.
“Of course, Kekava has major plans. We want to continue development, and we see such opportunities. However, much will depend on the Revenue Service’s attitude and decision. If the decision is favorable and the situation stabilizes, our priority this year will be to increase output 15 percent, and the share of exports to 30 percent,” said Skutans.
Kekava’s turnover in 2010 totaled 20 million - 6 percent less than in 2009. The company’s losses in 2010 reached 1.8 million lats, or 640,000 lats more than in 2009.
Kekava isn’t the only one facing debt and tax troubles. The 100 largest tax debtors - companies and private individuals, owed the state a total of 108.3 million lats at the beginning of December, or 4.6 million lats more than at the beginning of November.
According to the State Revenue Service’s Web site, Jevgenijs Jakovlevs is the largest tax debtor in Latvia with a debt of 10.4 million lats. Metalex owes the state 4.0 million lats, and joint venture Nafta Trading owes 3.7 million lats.
Koltex is in fourth place with a debt of 2.8 million lats, followed by Dizaina projekti at 2.4 million lats; Eriks Mingazetdinovs with 2.3 million lats; Putnu fabrika Kekava; Jevgenijs Okss with 2.0 million lats; Agris Kruze at 1.9 million lats, and Konti at 1.9 million lats.
According to Revenue Service data, 31 companies and private individuals had tax debts in excess of 1 million lats at the beginning of December.