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

"Resuming operations at the company is in the interest of the city as well as the state. Liepajas metalurgs halted operations quite some time ago, the equipment and machinery at the company is not getting newer, and this in facts limits the opportunities to resume the company's operations as soon as possible," said Sesks.

While Liepajas metalurgs insolvency administrator Haralds Velmers has said that the deadline for selling the company had to be extended so it could be sold for as high a price as possible, in the end it may turn out to be "penny-wise and pound-foolish," said Sesks. He fears that asking too much for the company may thwart the sale process and scare the potential buyers off.

Crisis is continuing in the metallurgical business in Europe and elsewhere in the world, therefore Sesks does not hold out much hope of Velmers finding an investor ready to buy Liepajas metalurgs at any cost.

Sesks also believes that all prospective investors who want to bid for the company must be appraised, and that they should preferably have the experience of running a metallurgical business.

Therefore, Sesks considers creditors' decision to extend the deadline for selling the company "not very comprehensible".

As reported, Liepajas metalurgs creditors agreed during a meeting on February 21 to extend the deadline to sell the company's property until August 31.