Latvia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Monday, 13.07.2020, 01:44

Court rules Latvian cosmetics producer Dzintars insolvent

BC, Riga, 12.11.2019.Print version
Today, the Riga Pardaugava City Court ruled joint-stock cosmetics producer Dzintars insolvent and appointed Janis Ozolins as the administrator of the insolvency process, LETA was told by court spokeswoman Viktorija Mezance.

She explained that the insolvency proceedings were initiated on the basis of an application from the insolvency administrator Mareks Diks, while terminating the legal protection process because it was found that Dzintars had not complied with its creditors' legal protection plan in its April 25, 2019 version and no amendments to the plan have since been approved by the majority of creditors and submitted to the court.

Mezance noted that the State Revenue Service (SRS) was is the main creditor in this case, and it became clear from the decision of October 11, 2019 that the tax administration no longer accepted the amendments to the legal protection process plan submitted by Dzintars.

This decision was based on a number of considerations, including the fact that Dzintars had not fully paid its current taxes - instead of the required EUR 1.764 mln, current taxes were paid in the amount of EUR 273,239.60, 

Secondly, Dzintars' total tax and other statutory obligatory debt had also increased - at the date of the SRS decision it reached EUR 6.815 mln, although the tax debt at the time when the legal protection plan was approved was at EUR 3.457 mln.

Third, despite being repeatedly requested, Dzintars has not provided any cooperation agreements, proposed draft real estate sales agreements, or any other document that would provide reasonable assurance of the company's ability to meet the payments set out in the legal protection plan.

As of yet, no evidence has been submitted to the court that Dzintars has settled its liabilities to its creditor

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