International Internet Magazine. Baltic States news & analytics
Tuesday, 02.09.2014, 07:17
Legal protection proceedings commence for Vitronic in Latvia
Taking into consideration the company's financial problems and relations with creditors, an application for legal protection proceedings was submitted to courts on July 26, reports LETA.
Therefore, Vitronic Baltica un partneri has used its lawful right to protect its interests and the interests of the company's creditors, explained Borisovs.
The legal protection proceedings of Vitronic Baltica un partneri were initiated on July 27. According to the court's decision, Vitronic Baltica un partneri has been given two months to present a plan of legal protection measures harmonized with the company's creditors.
Vitronic Baltica un partneri is confident that the legal protection proceedings will enable the company to settle its relations with creditors and complete the installation of speed cameras in Latvia.
The State Police have been informed about the legal protection proceedings of Vitronic Baltica un partneri, yet it will not stop the process of termination of the police's contract with the company, State Police's spokeswoman Sintija Virse told LETA.
The State Police will inform the public about its further decisions after it will have received and evaluated Vitronic Baltica un partneri explanations for the delays in implementation of the contract, added Virse.
In a statement to the media, Vitronic Baltica un partneri admits that not all speed cameras have been installed on schedule, however, there were objective reasons for this. The company also confirms that it is prepared to continue work and eventually implement the public-private partnership project.
As reported, the State Police plan to terminate the contract with Vitronic Baltica un partneri for the company's failure to meet deadlines in setting up 160 fixed speed cameras in Latvia.
However, Interior Minister Rihards Kozlovskis (Reform Party) has said that it is too early to say that speed camera installation contract with Vitronic Baltica un partneri will be terminated: the company has been given 20 days to provide explanations and suggestions for solving the current situation.
Kozlovskis admitted that it is clear that the company would not be able to fulfill its contractual obligations during the next few weeks. It is necessary to establish whether the company is capable of fulfilling them at all, said the minister.