Under the sale provisions the new owner of Livanu Stikls has to maintain existing production facilities and jobs, to sign employment contracts with company staff and to invest 200,000 lats in the company within three months.
A spokesperson for the company's administrator, Forums Audits, said the aim of the auction had been to sell a functioning company that would continue to produce glassware.
At the auction the German company paid a security deposit of 10 percent of the sale price. The remainder is to be paid by Oct. 4.
Another bidder had applied to participate in the auction but had failed to meet the necessary preconditions. Prior to the auction, Herner Glas' stake in the company amounted to less than 50 percent. Livanu Stikls has been producing glassware for several decades. It has glassworks in Poland and Turkey, but none in Germany.
According to Forums Audits, Livanu Stikls had liabilities in excess of 1 million lats when it was declared insolvent.
So far it has settled part of its debts to its gas supplier, Latvijas Gaze, but the money raised at the auction will be paid to another creditor, Baltijas Tranzitu Bank.
Since it was declared insolvent in November 2000, monthly turnover has ranged from about 75, 000 lats to 100,000 lats.
The company's decline was partly due to the purchase of a much needed glass-melting furnace. Fluctuations in the value of the euro and the German mark also contributed to the decline.
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