Latvia, Legislation, Markets and Companies, Metals Market, Real Estate

Satini Energo LM shareholders offered Liepajas metalurgs to purchase 50% of its shares, LETA was informed by the company's board chairman Martins Reisons.

Satini Energo LM shares were sold to pay Liepajas metalurgs bills and salaries. At the moment, the sale of provides Liepajas metalurgs workers with salaries and pays the company's electricity and gas bills, as the Liepajas metalurgs administrator Haralds Velmers points out in an interview on "De facto".

As reported, Liepajas metalurgs legal protection plan envisages the company's recovery. According to the plan, Liepajas metalurgs property, which is not required for the company's basic activities, will be sold. Liepajas osta LM shares and real estate property required for production will not be sold.

"De facto" reports that the plan also envisages firing around 500 workers. The remaining ones will be promised 15 percent raises. Moreover, for the company to be profitable, it will have to sell its products at higher prices. Metals Consulting consultants have confirmed that Liepajas metalurgs has the potential to produce higher quality production and sell goods on European markets.

The company will sell its shares in other companies by the end of May 2014.

Liepajas metalurgs could gain LVL 3.7 million from selling its companies, LVL 1.6 million – from selling unnecessary real estate.

Liepajas metalurgs largest shareholders, board and Liepaja Mayor Uldis Sesks have declined to comment these transactions.