Financial Services, Latvia, Legislation, Markets and Companies, Metals Market

He said the Economics Ministry was working on possible scenarios for further actions by the Latvian government regarding KVV Liepajas Metalurgs. The scenarios are to be presented to the government on May 17. Until then, the company's shareholders can submit their proposals for restructuring of KVV Liepajas Metalurgs.

Aseradens pointed out that KVV Liepajas Metalurgs had been fairly inactive recently, having suspended practically all operations and laid off personnel. But the shareholders have time until May 17 “to make a serious proposal”, he said, adding that the situation in the global market has been improving lately and prices for steel products had started growing.

As reported, Ukrainian investor KVV Group said it felt forced to take a decision on the conservation of the Latvian steel plant because of the negative factors hampering the company's operations – the crisis in the global metal industry, the company's debts to secured creditors and the Latvian government's reluctance to provide assistance to the industry.

KVV Liepajas Metalurgs, based in Liepaja port city in south-western Latvia, has been struggling with financial troubles lately. The company's management has blamed the difficulties on a high electricity price and complicated situation in Europe's metal industry. The company has had difficulties paying its electricity bills and wages to workers. It has also missed the deadline for a payment it was supposed to make to the Latvian state for the Liepaja-based plant. KVV Group, which acquired Liepajas Metalurgs under an agreement signed on October 2, 2014, is supposed to pay for the plant EUR 107 million in several installments over the next 10 years.