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Latvian economics minister says there is interest in auctions of insolvent steel plant's assets
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    Latvian economics minister says there is interest in auctions of insolvent steel plant's assets

    RIGA, March 13 (LETA) - There is interest in the auctions of the assets of the insolvent Latvian steel company KVV Liepajas Metalurgs, Economics Minister Arvils Aseradens (Unity) told the press after the Cabinet of Ministers meeting on Tuesday.

    But he refused to speculate on how many bidders would actually participate in the auctions. “I would abstain from making any forecasts until the bidders have registered for the auctions,” Aseradens said.

    He also would not make any guess as to the amount that could be recovered through the auctions, saying that by the time it was decided to auction the company's assets it had been clear that the government would not recover the full amount.

    Answering the question about the state guarantee that was once issued to the steel company, the economics minister remarked that the government should be more thorough in assessing the requests for state guarantees.

    As reported, Vladimirs Loginovs, the head of the Privatization Agency (PA) said earlier on Tuesday that the Latvian government was unlikely to recover all the money it claims from the insolvent steelmaker KVV Liepajas Metalurgs by selling the company’s assets at auctions.

    He said that the total amount claimed by the government from KVV Liepajas Metalurgs is EUR 62 million, plus fine. “Six auctions have been announced already to sell the possessions pledged to the Privatization Agency’s subsidiary FeLM, and the total starting price of the KVV Liepajas Metalurgs assets at the auctions is EUR 7 million. I would not like to make any speculation as to how much money will be recovered at the auctions, but it will be nowhere near EUR 60 million,” Loginovs said.

    The assets of Latvia's insolvent steel company KVV Liepajas Metalurgs will be auctioned off. The company's insolvency administrator said the decision had been taken because none of the company's potential investors had met the requirements set by the secured creditors or provided the required guarantees that would prove their ability to acquire KVV Liepajas Metalurgs in one piece and relaunch its operations.

    Liepajas Metalurgs metallurgical plant based in the Liepaja port city in south-western Latvia was first declared insolvent after it failed to repay a state-guaranteed loan to an Italian bank. The government sold the plant to Ukrainian investors, KVV Group, in late 2014.

    Liepajas Metalurgs was renamed KVV Liepajas Metalurgs and officially re-opened on March 6, 2015, but soon started having problems again and was once more declared insolvent in September 2016.

    • Published: 13.03.2018 15:07
    • Ivars Motivāns, LETA
    • © The given news may not be republished in any way or amount, or otherwise used by the mass media or Internet websites, without written permission of LETA. If this provision is not observed, the matter will be taken to court pursuant to the laws and regulations of the Republic of Latvia.
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