EU – Baltic States, Financial Services, Latvia, Legislation, Markets and Companies

The court in Liepaja, south-western Latvia, on Wednesday decided to terminate the insolvency proceeding because the creditor, Danish company Hedensted Gruppen, has withdrawn the insolvency claim it had earlier filed against Grobina.

The insolvency proceeding was opened on December 14. At the time Grobina explained in a statement to "Nasdaq Riga" stock exchange that the Finnish auction house "Saga Furs" this year had unexpectedly changed mink sales procedures, namely, completely removed mink collection from December 2015 auction. As a result, mink produced this year will only be sold in three auction next year – in March, June and September 2016. ”In the last 20 years this is the first season when mink will not be traded in December," the fur farm said.

Therefore the management is now actively working with its creditors on the accumulated debt repayment transfer to 2016, proposing to make the payments from revenues of mink auctions in March and June 2016. An agreement had been reached with Hedensted Grouppen about extension of the payment deadline in respect of the debt accumulated in 2014, which would be repaid from the 2016 auction revenue.

In January-September 2015, Grobina reported a turnover of EUR 4.40 million at a 74% rise from the same period in 2014 and a profit of EUR 155,600 as opposed to a loss of EUR 961,500 a year ago. The annual results in 2014 were a turnover of EUR 2.879 million, down 23% year-on-year, and a loss of EUR 1.657 million in contrast to a profit of EUR 783,400 in 2013.

Grobina is one of the largest fur farms in Latvia and produces mink, arctic fox and silver fox.