Industry, Latvia, Markets and Companies, USA

International Internet Magazine. Baltic States news & analytics Friday, 10.07.2020, 18:27

Valmieras Stikla Skiedra fiberglass company sells its US plant to Saint-Gobain

BC, Riga, 03.06.2020.Print version
Latvia's Valmieras Stikla Skiedra fiberglass company has sold the plant of its US subsidiary Valmiera Glass USA Corp. to Saint-Gobain Adfors America, Inc. for USD 17.5 mln, according to a statement to Nasdaq Riga.

The transaction was closed on Tuesday, June 2. 

On March 3, 2020, the Latvian fiberglass producer's U.S. subsidiary signed an asset purchase agreement with Saint-Gobain Adfors America, Inc. to transfer its assets of Phase I and II operations in Dublin, Georgia, USA, to Saint-Gobain Adfors America, Inc. The total price of the transaction is USD 17,500,000 plus additional consideration as set forth in the asset purchase agreement. 

The US subsidiary received full payment from contracting party on June 2, 2020 and the assets of Valmiera Glass USA Corp. were handed over to Saint-Gobain Adfors America, Inc. the same day.

As reported,  Valmieras Stikla Skiedra under amendments to the legal protection plan undertook to sell its US subsidiary by the end of the year. In line with the previous plan, the US subsidiary had to be sold by March 31, 2020.

The company undertakes to continue to facilitate the sale of the assets of US subsidiary and to ensure that latest until December 31, 2020 not less than USD 17,500,000 or with written secured creditors' approval smaller amount of the sale of the assets of US Subsidiary will be used for the payment of the secured creditors' claims.

The principal payments for secured creditors of the fourth and fifth month are postponed until October 31, 2021. Within the term of implementation of the plan the company continues to pay compensation for the restriction of secured creditors’ rights during the legal protection plan, as well as commission payments for the use of valid guarantees.

By November 31, 2020, the company will attract financing of up to EUR 10,000,000 to ensure the sustainable economic activities of the company.

Renewed forecast of the revenues from the company’s economic activities for the entire plan period – EUR 174,188,286.

The amendments are introduced with an aim to ensure the sustainable economic activities of the company and to promote a stable cash flow, which is a precondition to enable the Company to settle accounts in full with all the creditors of the plan.

Valmieras Stikla Skiedra group comprises the parent company Valmieras Stikla Skiedra and its three subsidiaries: Valmiera Glass UK Ltd. in the United Kingdom, Valmiera Glass USA Corp. and Valmiera Glass USA Trading Corp. in the United States. Valmieras Stikla Skiedra shares are quoted on the Secondary List of the Nasdaq Riga stock exchange.

Search site