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KVV Group has offered EUR 107 million, and Liepajas metalurgs must restore the production process already this year," Velmers said.

Since the end of August, Liepajas metalurgs continued negotiations with two final bidders – KVV Group and Luxembourg-based United Group, which belongs to Russian millionaire Igor Shamis. According to Velmers, the negotiations concerned the legal aspects of the deal, payment schedules, and the amount of the down payment. In choosing the buyer, the final amount and payment schedules were taken into account.

Velmers said that both candidates' offers were equally competitive, however, he declined to reveal their prices. Both candidates offered deferred payments. Velmers explained that all six previously chosen potential candidates had offered deferred payments. The immediate or short-term payment would have been very low, and there is a risk that it would not satisfy the creditors, Velmers explained, saying that the currently chosen type of payment has proven itself, and "we can receive the maximum amount of sum that this asset currently bears."

When asked, whether the procurement price will cover the company's debt, Velmers said that the price covers the total assets, and that the sum will be distributed among all creditors. Thus, Velmers was unable to comment how much each creditor will receive. It will be possible to calculate specific numbers after the deal is closed, Velmers said.

Last year, Liepajas metalurgs debt was covered using state funds in the amount of EUR 73.69 million.

There is little information about KVV Group on the Internet. Information provided by Bloomberg indicates that KVV Group operates in scrap metal business. Bloomberg reports that KVV Group also applied for a tender of steel factory Istil this year.

Finance Minister Andris Vilks (Unity) commented on the results of the tender for insolvent Liepajas metalurgs(LM), saying that it is important for the company's administrator to complete structuring the deal without delay. When done and approved, a full assessment will be made, and clarity will come on when the secured creditors will have their claims satisfied.

Vilks expressed this view via his spokesman, Aleksis Jarockis.

At this time the named price in the tender exceeds the basic claims, including the state-covered guaranteed credit from the Italian bank UniCredit.

Administrator Haralds Velmers has informed the government about the investor selected, who has made the best bid overall, with a key factor being the resolve to re-open the dormant plant in the near future, and reimbursing creditors.