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Talks with potential KVV Liepājas metalurgs buyers to conclude in August

Talks with potential buyers of the insolvent KVV Liepājas metalurgs will conclude at the end of August, says representative of the company’s insolvency administrator Dzintars Hmielevskis.

Information published in the insolvency registry states that a clarified KVV Liepājas metalurgs property sales plan has been submitted. The company’s insolvency process administrator Guntars Koris has extended the property sales term to coordinate the purchase contracts with creditors and make the final decision in regards to the choice of the buyer. Extension of the term is also required to secure visas for representatives of potential investors.

The sale term is extended until 29 September 2017.

Hmielevskis notes that talks with potential investors are reaching their final stages and are continuing very actively. Because of that, no additional information is being released at this time.

The sale term for KVV Liepājas metalurgs property was originally extended until 16 August. The insolvency administrator explained the decision to extend the sale term because after receiving offers from investors, more time was needed to assess offers and request additional documents, as well as show potential investors around the production plant.

On 30 May, Economy Minister Arvils Aseradens mentioned after a government meeting that six potential investors submitted non-binding offers and that the Cabinet of Ministers gave green light for future talks. Aseradens said that he is cautiously optimistic about the possibility of restarting production.

In accordance with the Insolvency Law, the property sale term is six months from the day of declaration of a company’s insolvency. The original term was 16 March 2017. This term was later extended to 16 June. And now it has been extended to 16 August.

The total amount creditors requested from KVV Liepājas metalurgs’ insolvency administrator was EUR 116,587,921.86. The company’s employees have also submitted claims for a total amount of EUR 722,781.68.

Liepaja Court declared KVV Liepājas metalurgs insolvent on 16 September 2016. There were 147 people employed at KVV Liepājas metalurgs on the day it was declared insolvent.


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