100% of "Riga Railcar Factory" shares to be sold at auction

RIGA, April 29 - In mid-May, 100 percent of Riga railcar factory "Rigas vagonbuves rupnica" (RVR) shares will be sold at auction; the company previously used its shares as security to take out loans from the now-defunct "Latvijas Krajbanka".

The shares are to be sold together with "Latvijas Krajbanka" claims against the company in the amount of EUR 14,109,420.08 million.

The starting price of the RVR shares will be EUR 4.5 million, which is exempt from value added tax.

The auction will be held on May 15, at 11 a.m. at Ganibu dambis 17A, Riga.

RVR owes "Latvijas Krajbanka" several million euros in total.

In February, media reported that the company's property would be auctioned in several installments. RVR used its property as security to borrow more than EUR 10 million from "Latvijas Krajbanka". In October 2013, an auction of "Latvijas Krajbanka" claims against RVR did not take place as no bidders applied for participating in the auction, and for this reason it was decided that the factory's property would be sold.

An auction of "VRC Zasulauks", in which RVR holds 49 percent of shares, originally scheduled for February 17 also did not take place. Oskars Firmanis, representative of "KPMG Baltics", the administrator of "Latvijas Krajbanka", said that the auction was canceled because no bidders had applied.

The starting price for "Zasulauks" shares was EUR 1.7 million. "Pasazieru vilciens", which owns the other 51 percent of "Zasulauks" shares, has the right of first refusal on the shares.

Information provided by "Firmas.lv" shows that in 2012, the turnover of "Riga Railcar Factory" was EUR 1.8 million. The company operated with losses of EUR 1.9 million in 2012.
leta.lv

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