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''The government views this as the worst case scenario, which is undesirable for the company, employees, the city of Liepaja, and Latvia as a whole. Furthermore, we are very puzzled at the current hesitation by the shareholders,'' Pavluts emphasized.

As reported, the shareholders at the financially-troubled company must either sell their shares or invest large amounts of money into the company by May 31.

Liepajas metalurgs creditors have decided to capitalize approximately one-half of the company's debt commitments (currently exceeding LVL 125 million) and become its shareholders.

The company's current shareholders will either have to sell their Liepajas metalurgs shares to the company's creditors for LVL 1, or invest LVL 10 million in the company each, in which case they will remain shareholders and, alongside the company's creditors will continue to support and stabilize the company.

This information comes from a representative from Prudentia, consultant to the company's creditors, after a meeting of the Cabinet of Ministers committee today.

The largest shareholders of the financially-troubled joint-stock metallurgical company Liepajas metalurgs – Sergejs Zaharjins, Ilja Segals and Kirovs Lipmans, are evasive on commenting whether they intend to sell their shares or invest in the company.

Lipmans told the business information portal ''Nozare.lv'' that LVL 10 million is not a large sum of money for Zaharjins and Segal, and emphasized that both should sell their shares.

''They should not be allowed to work one day at the company,'' said Lipmans, who once again confirmed that he is not intending to sell his shares.

Meanwhile, Liepajas metalurgs spokeswoman Simona Laiveniece told Nozare.lv that she will not comment the new conditions set-out by Prudentia. ''I am not authorized to comment in the name of the shareholders. When we have an official comment, we will immediately make it public,'' she added.