Agriculture, Financial Services, Latvia, Legislation, Loan, Markets and Companies

The minister voiced hope that the latest loan repayment holidays, approved by the government today, will enable Latvijas Piens to restructure its operations. She described the situation in the company as generally positive.

"Meanwhile, Latraps has a plan how to ensure the company's operations by becoming the largest shareholder in Latvijas Piens. Latraps has already made sizable investments in the company's development," the minister said.

Latraps, which currently owns a 19.62% stake in the dairy plant, intends to become its key shareholder with a 73.28% stake by purchasing 53.66% of Latvijas Piens shares from Trikata KS.

Rudite Klikuca, the insolvency administrator of Trikata KS, told LETA that she was not informed about such developments and would not comment on the situation.

"No deal has been made as yet, and as long as there is no clarity I will refrain from any comments. The outcome of the deal will be known within a week," the insolvency administrator said.

The Latvian government yesterday approved loan repayment holidays for Latvijas Piens, a Jelgava-based dairy plant founded by agricultural cooperatives.

Latvijas Piens will not be required to make any payments of the principal amount of the state-guarantee loan until August 25.

The government on Tuesday discussed behind closed doors the amendments to the state-guaranteed loan agreement between Latvijas Piens and SEB Banka signed on June 9, 2011.

Finance Minister Dana Reizniece-Ozola (Greens/Farmers) told the press that Latvijas Piens had asked for repayment holidays therefore the guarantee agreement with the Latvian state had been amended.

"The government approved loan repayment holidays for the company until August 25 without changing the loan amount,” she said.

On July 28, 2015, the government already granted six-month loan repayment holidays to Latvijas Piens concerning the state-guaranteed loan.

A new owner has been found for the controlling stake in Latvijas Piens currently held by the insolvent agricultural cooperative Trikata KS, Rudite Klikuca, the insolvency administrator of Trikata KS, told LETA earlier, saying that the name of the new owner would be announced after Easter holidays.