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Rigas Satiksme creditors not claiming that the company pay its debts before term - Matiss

  • 2019-02-08
  • LETA/TBT Staff

RIGA - Riga municipal public transport company Rigas Satiksme has managed to convince creditors that the situation at the company has been stabilized, and the creditors will not ask the company to pay its debts before term, Rigas Satiksme temporary board member Anrijs Matiss told LETA.

Rigas Satiksme's board today had a meeting with representatives of the company's largest creditors - several leading Latvian banks, European Investment Bank and Nordic Investment Bank, said Matiss.

Rigas Satiksme representatives informed the creditors about the financial situation at the company, plans about further operations, and other matters. "The creditors had very many questions - about the potential criminal charges, the ongoing investigations, and what the company's management was planning to do now. They also inquired about corporate governance, when a supervisory board would be set up at the company and what role it would play," said Matiss.

According to Matiss, the creditors also said they would like to meet with Riga Mayor Nils Usakovs (Harmony) to hear his opinion about the recent developments. "At the moment, it appears that the creditors are favorably disposed to us, and I believe there will be no surprises in the coming weeks. At least none of the creditors has said that they will claim their loans be paid. Our main goal was to convince them about stability at the company, and it seems we did it," said Matiss. However, the company and the banks' representatives will now have meetings on a regular basis, he added.

Matiss also said that meetings with Skoda Electric, Skoda Transportation and Solaris Bus&Coach representatives will take place next week to discuss Rigas Satiksme's claim that these companies pay more than EUR 6.5 million for vehicles not delivered by the agreed time.

As reported, the Corruption Prevention Bureau has started a criminal case on three procurement tenders organized by Rigas Satiksme: 2016 tender to buy low-floor trams for a total of EUR 62,597,477, 2013 tender to buy trolley-buses for a total of EUR 131,646,135, and one more 2013 tender to buy buses worth EUR 75,808,297.

Following the Corruption Prevention Bureau's decision, all five Rigas Satiksme board members stepped down. Usakovs then appointed a temporary board that is comprised of Matiss, Rigas Satiksme employees Edmunds Zivtins and Janis Gedusevs, and former Riga City Council official Armands Kruze.

Rigas Satiksme's total debt liabilities exceed EUR 200 million.