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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 19:43

Liepajas osta LM shares will not be sold at auction

BC, Riga, 30.04.2014.Print version
Haralds Velmers, insolvency administrator for the joint-stock metallurgical company Liepajas metalurgs, has notified the company's creditors about alterations in the company's sale strategy, according to which the company Liepajas osta LM (Liepaja Port LM) will not be sold at auction, reports LETA/Nozare.lv.

A notice about the sale of Liepajas osta LM shares will be printed in at least one business newspaper and portal in Latvia, and bids will be accepted for one month after that, said Velmers.

 

The alterations also concern Liepajas metalurgs property that is not associated with the company's metallurgical operations, and the company's sale strategy has been changed in accordance with the creditors' objections and proposals, corrected property assessments, latest developments and information.

 

Liepajas osta LM and Liepajas metalurgs are two different companies, and selling and restructuring the former requires a different and complex approach, said Velmers. This will help solve problems regarding Liepajas osta LM future operations as well as the Liepajas metalurgs sales process. Separate sale of Liepajas osta LM will make it easier to sell the company and therefore help it solve its critical financial problems. On the other hand, if Liepajas metalurgs was sold along with the stevedoring company's major financial liabilities, this could have a negative effect on the company's price, explained Velmers.

 

"In taking the decision on selling Liepajas osta LM, I acted as not just a seller but also as a representative of Liepajas osta LM shareholders to which the future of the company is important," notes Velmers, explaining that the new sales strategy for Liepajas osta LM will help find the best buyer. Also, it cannot be rule out that some of the investors may want to buy both Liepajas osta LM as well as Liepajas metalurgs, added Velmers.

 

If bids for buying Liepajas osta LM do not meet the interests of the company or of Liepajas metalurgs, the company will be sold at auction pursuant to the Civil Procedure Law and Insolvency Law.

 

In the meantime, Liepajas metalurgs will continue to have access to port services thanks to the subsidiary of the company, "50. piestatne". It is currently planned that 50. piestatne will be sold together with Liepajas metalurgs.

 

VeLMers also informs that company Rukis LM will be sold at auction, whereas the Estonia-registered LM Resurss and Belarus-registered Torgoviy dom "Liepaiskiy Metalurg" will not be sold as both are undergoing liquidation procedures. Likewise, Sporta klubs Liepajas metalurgs will not be sold as it has been ruled insolvent.






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