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Lipman ready to attract strategic investor for "Liepajas metalurgs"

Kirov Lipman.
RIGA, April 25 - "Liepajas metalurgs" shareholder Kirov Lipman has expressed his readiness to attract a strategic investor to stabilize the company and ensure sustainable growth.
Lipmans is also ready to personally participate in the company's rescue.

However, to take part in the company's rescue, Lipman requests "Ernst&Young Baltic's" audit report on the company's finances, and replacement of the company's management, as he points out in a letter to Prime Minister Valdis Dombrovskis (Unity), Finance Minister Andris Vilks (Unity), Economy Minister Daniels Pavluts and State Treasurer Kaspars Aboltins.

The businessman points out that he has acquainted himself with the Finance Ministry's letter informing about the government's five conditions for providing further support for "Liepajas metalurgs".

Lipman explains that he still does not have objective information on the company's true financial state. His previous requests to become familiar with "Ernst&Young Baltic" report have been ignored. Even though "Liepajas metalurgs" and the government do not provide the requested information about the company, violating the principles of good governance, he is expected to invest a considerable amount of money, writes the businessman.

As reported, "Liepajas metalurgs" creditors have set a number of conditions for the company to meet: shareholders must invest additional funds, a new board must be elected, supported by all shareholders, the company must buy scrap metal on the Baltic market at adequate prices, the company must pay interest due to Italian bank "UniCredit S.p.A", and management must draw up a plan on restructuring cash flows at the company.

Two of the company's largest shareholders - Sergej Zaharjin and Ilja Segal - have provided an elusive answer to the five conditions set by the government and "Liepajas metalurgs" creditors last week, including the one on investing LVL 25 million worth of personal assets. Zaharjin and Segal say they are seeking a potential investor for the company. However, judging from their response, they are not ready to invest their own assets.
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