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Liepaja SEZ to terminate land lease agreements with KVV Liepajas Metalurgs

BC, Riga, 14.06.2016.Print version
The administration of Liepaja Special Economic Zone (SEZ) intends to terminate two land lease agreements with KVV Liepajas Metalurgs metallurgical company over non-payment of rental, Liepaja SEZ reported LETA.

Liga Ratniece-Kadege, a spokeswoman for Liepaja SEZ, told LETA that the board of Liepaja SEZ had decided to terminate the lease agreements with KVV Liepajas Metalurgs for lease of two land plots in Liepaja, south-western Latvia, because the tenant does not use the properties and had failed to pay rental for quite a long time.

 

Liepaja SEZ had leased the two properties to Liepajas Metalurgs, the Liepaja-based metallurgical company which went insolvent. The steel plant was then purchased by Ukraine’s KVV Group and renamed as KVV Liepajas Metalurgs. It also took over the land lease agreements with Liepaja SEZ, but failed to comply with the agreement terms about maintenance and development of the two properties. KVV Liepajas Metalurgs also has been missing rental payments for quite a while.

 

Due to the above-mentioned, the board of Liepaja SEZ decided to terminate the lease agreements with KVV Liepajas Metalurgs as of July 15, 2016. By this date the steel company is expected to pay off its debt, clean up the properties and hand them over to Liepaja SEZ otherwise Liepaja SEZ will start a lawsuit against KVV Liepajas Metalurgs.

 

Ukraine's KVV Group announced in late March this year that it had been forced to take a decision on the conservation of KVV Liepajas Metalurgs steel plant because 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 – were persisting.






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