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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 14:27

Liepajas osta LM could request legal protection process to be started

BC, Riga, 28.04.2014.Print version
It is possible that joint-stock company Liepajas osta LM, a subsidiary of the insolvent metallurgical company Liepajas metalurgs, could request a legal protection process to be started so the company could sort out its financial problems, as Liepajas metalurgs insolvency administrator Haralds Velmers told the Nozare.lv business portal, informs LETA.

This may be necessary if Liepajas osta LM has to pay into the state budget a total of EUR 28,375,874.90 – the amount of value added tax not yet paid by the company plus late payment penalties.

 

In April 2013, the Administrative Regional Court ruled in Liepajas osta LM favor in the company's dispute with the State Revenue Service over an additional VAT amount that the Revenue Service wanted the company to pay into the state budget. However, this past February the Supreme Court ordered the Administrative Regional Court to repeatedly review the case. According to the Administrative Regional Court's schedule, the case will now be heard on May 20.

 

When asked if the company's decision to request legal protection process depends on the court's May 20 decision, Velmers said that everything depended on the company's ability to honor its short-term liabilities.

 

The board and council of Liepajas osta LM have discussed the matter of the legal protection process regardless of the various legal disputes that the company is involved in, as Liepajas osta LM currently has financial problems and it is hard for the company to honor its short-term liabilities. Therefore the company needs to reach agreement with creditors on postponing the due payments. The legal protection process would make it possible for the company to do this and to bring order to the company's cash flows in the long term.

 

Liepajas osta LM is the largest stevedoring company in Liepaja. The company's turnover decreased significantly last year, by 45 percent, after its parent company Liepajas metalurgs was ruled insolvent.






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