Court declares "Winergy" insolvent, company says it will sue state of Latvia for breaching investment protection agreement

RIGA, Nov 6 - Riga Latgale District Court has approved insolvency proceedings at "Winergy", a company that belongs to Estonia's "Wind One" and runs Latvia's largest wind park in Ventspils Region.

Creditors' claims against "Winergy" will be accepted for one month. Una Zakrevska has been appointed the company's insolvency administrator.

"Winergy" said, on the other hand, that the court ruling was no surprise and was to be expected, given officials' failure to act and "Norvik Banka's" continual attempts to have the company declared insolvent.

"Winergy" has been doing everything in its power to avoid being driven to insolvency as a result of a campaign targeting the company, organized by "Norvik Banka", the company said in a statement. "Winergy" has turned to Latvia's officials multiple times, asking their assistance in investment protection and in order to avoid international litigation. Unfortunately, officials' replies have been formal, or there were no replies at all.

"Winenergy" notes that, regardless of the country's obligations under international investment protection agreements, nothing has been done in this case. Therefore, "Winenergy's" owner, "Wind One" has no choice but to sue the state of Latvia for dozens of millions of lats, the company says in the statement.

As a result, Latvia is likely to be hit by yet another investment protection dispute in the near future, and the cost of the litigation will have to be covered by money from the state budget.
leta.lv

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