Liepajas metalurgs submits protection plan

Latvian metallurgical company Liepajas metalurgs has submitted its proposals and principles for the company’s legal protection plan to the club of creditors’ financial consulting firm Prudentia Advisers, Liepajas metalurgs council chairman Guntis Vilnitis told the business information portal Nozare.lv.

“We submitted to the consulting firm our proposals and calculations regarding the restructuring of the company, the purchase price of scrap metal and sale price of metal products, our projected production volumes and other calculations. These figures will now be included in the legal protection plan and presented to the club of creditors,” Vilnitis said.
He added that representatives from Prudentia, the club of creditors and Liepajas metalurgs will meet this week to discuss the legal protection plan.

The revised legal protection plan for Liepajas metalurgs deals with debt capitalization opportunities, separating several production facilities from the company, selling shares in Liepajas metalurgs subsidiaries, and layoffs, the company’s press service said. The plan stipulates that Liepajas metalurgs requires investment of 25 million lats (35.7 million euros) for restoration of the company’s current assets so the company could resume production in September. The plan also offers capitalization of unsecured creditor debts.

The State Treasury’s press secretary Eva Dzelme said to Nozare.lv that the state will only make an investment in the company’s current assets if the company’s shareholders also do so, or if the shareholders hand their shares over to creditors who will then make the investment in proportion to their shares in the company.