Foodstuff, Latvia, Legislation, Markets and Companies, Mergers and take-overs

She said that Tervete Food had bought Druva Food's assets at the auction for EUR 998,203. If the court approved the outcome of the auction, Tervete Food paid the full amount and other legal requirements were fulfilled, Tervete Food will become the rightful owner of all Druva Food's assets.

Zake presumed that Tervete Food intended to resume ice cream production at the Druva Food's plant. "They can dispose of the assets at their discretion but I have no information that they intend to split them up because the plant would lose its value then," the insolvency administrator said.

As reported, the court declared Druva Food insolvent on October 31, 2017, based on an insolvency claimed filed by Time to Be company which said Druva Food had failed to pay them for repairing a refrigerator. Nerijus Gedeika, the former Druva Food CEO, also had filed an insolvency claim against the company as the ice cream maker had withheld his salary for several months.

Druva Food representative Aldis Osenieks said at the court sitting that the company could not pay its creditors and also had tax debts. If the creditors had not filed their claims, Druva Food would have filed for insolvency itself, he said.

Druva Food was founded in 1994 and has a share capital of EUR 2.683 million. According to firmas.lv business information website, its biggest shareholders are Estonian company Aktsiaselts (50%) and Aldis Osenieks (50%). In 2015, Druva Food generated EUR 2.225 million in turnover, down 10% year-on-year, while the company's profit rose 8.1% to EUR 139,600. The company's performance results for 2016 are not available.

Tervete Food was founded in November 2017 and has a share capital of EUR 10,000. Its sole owner is Santa Paskauska. The CEO of Tervete Food is Niks Paskausks, the chairman of the supervisory board of Tervete AL beer producer.