Foodstuff, Investments, Latvia, Markets and Companies

A short while ago, on January 17, then Daugava owner Aigars Vaivars sold the company to Piena un maizes nams Daugava owner Baiba Batraga, writes LETA.

The latest deal "is to keep the company a family business. Furthermore, it should be viewed as a step forward toward the credit institution, demonstrating that the company is run by a reliable person," Daugava representatives told the business portal "Nozare.lv".

Explaining why Daugava was previously sold to Batraga, Daugava representatives explained, "We had to act swiftly, but Vaivare was not in Latvia at that moment, which is why a decision was made to hand the company's shares over to Batraga, who is no less reliable person than Vaivare."

As reported, on January 14, due to several gross violations by debtor, Swedbank decided to claim that Daugava repay bank's loan – LVL 1.17 million. Swedbank has received Zemgale Regional Court decision that Daugava and joint-stock Piena un maizes nams Daugava assets will be arrested, as well as the involved persons' bank accounts and property.

Vaivars, however, pointed out on January 14 that Swedbank was displaying financial terrorism against Daugava by demanding the company to repay its debt despite all contractual liabilities being observed.

To reach a compromise and break the deadlock, Vaivars and representatives from Swedbank had a meeting at Daugava production facilities in Serene on January 25.

Both sides said they wished to reach a peaceful settlement of the dispute. Vaivars stressed that he wanted Daugava to continue operations and development, provide people with jobs and honor its obligations to the state and the bank. Vaivars said he hoped that the bank would keep its promise not to harm the business of Daugava. The company has accepted the bank's solutions, and Daugava lawyers will review them in two weeks' time, said Vaivars, adding that Swedbank representatives had been shown the entire production cycle at Daugava, from purchases of raw materials to product packaging.