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Gov't gives investor fortnight to decide on buying Latvian steel firm

Source: Xinhua| 2018-01-05 03:05:47|Editor: yan
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RIGA, Jan. 4 (Xinhua) -- The Latvian government has given a potential investor a fortnight to decide whether to buy Latvia's ailing steel company KVV Liepajas Metalurgs, Economics Minister Arvils Aseradens told reporters Thursday.

"The insolvency process of Liepajas Metalurgs has reached the stage where the search for a new investor has entered the finishing phase. One of the investors has asked for a couple of more weeks to complete bank formalities," the minister said.

Aseradens also does not believe the government will manage to recover all the budget money that has been injected in the financially troubled company.

He noted that the government had earlier decided to end the search for an investor by Dec. 20, 2017, but that the process was extended at a potential investor's request.

If the talks with the investor fail to produce a deal, the assets of KVV Liepajas Metalurgs will be split up and sold in pieces, the minister said.

Ukraine's KVV Group acquired Liepajas Metalurgs in 2014, promising to pay 107 million euros (129.1 million U.S. dollars) in several installments for the insolvent metallurgy company.

After struggling with financial troubles for months, KVV Liepajas Metalurgs halted production in March 2016 and laid off some 300 workers. About 100 workers remained to keep the steel plant on "standby mode".

The Ukrainian investor never paid the full price for the acquisition and the company ended up in the Latvian government's control again.

In September 2016, a district court ruled Liepajas Metalurgs insolvent.

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