The faltering metallurgical giant Liepajas metalurgs (LM) will now undergo examination by a court as its Legal Protection Process Administrator, Haralds Velmers, on Nov. 4 filed a petition for insolvency, reports Nozare.lv.
The Liepaja court will have two weeks’ time to review the matter, and if LM is designated insolvent, it will be placed under Velmers’ 100 percent supervision, eventually leading to a deed of sale (within six months following the court’s ruling).
Ralfs Vilands, a spokesman for the administrator, said a ruling declaring the metalworking company bankrupt was a formality, since the case had been before the court in an action to protect Liepajas Metalurgs from creditors while it attempted to restructure its business.
Velmers said after filing the petition that the insolvency designation will “open new opportunities for the company itself, and - in the long run - a majority of its employees.”
He said that preparing the company for sale will not be an easy process.