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

''It is a pity to see that in a situation when the company's shareholders and council need to act with selflessness to save the company and normalize the situation, yesterday's council meeting was not properly prepared and no issues of strategic importance were agreed upon to rescue the company,'' Lipmans said.

He added that he does not have the impression that council members, including the company's largest shareholders Sergejs Zaharjins and Ilja Segals, truly want to save Latvia's largest metallurgical company.

''After all this, I have come to the conclusion that the company's current management must be replaced, or else thousands of employees will lose their jobs and cause a social crisis in Liepaja (southwestern Latvia),'' Lipmans said, confirming that he himself is prepared to personally help stabilize the situation, including attracting a strategic investor.

As reported, the State Police today are carrying out searches at the homes and offices of shareholders and management of the financially-troubled metallurgical company Liepajas metalurgs.

The Economic Crime Department is investigating a criminal process on possible misappropriation of funds and exceeding authority by company shareholders and management.

Zaharjins and Segals have agreed in principle to sell their shares in the company for LVL 1 each to creditors, as financial consulting firm Prudentia spokesman Karlis Krastins told reporters last week. He explained that discussion on possible sale of Liepajas metalurgs shares would continue, and that it would also take place with the company's third shareholder Lipmans. The latter, however, has rejected the offer to sell his shares in the company for a symbolic lat.

Liepajas metalurgs largest creditors are Latvenergo, Citadele banka, SEB banka, Stemcor and State Treasury.