Valmiera Glass files for legal protection in Latvia

One of Latvia's major businesses, Valmiera Glass Group, announced June 17 it was filing for legal protection in Latvia as a result of difficulties with its operation in the United States.

Company chairman Stefan Jugel told reporters the application for legal protection had been taken by the glass-fiber manufacturer "to ensure the sustainable continuation of the group and its operation".

"I want to announce at this point that the operational business of the company goes ahead in full swing... this is not insolvency, this is a legal protection system which allows us to go ahead and negotiate at the same time with the lenders of the company," Jugel said.

The move followed a demand by one of its smaller U.S. creditors to pay back a loan instead of rolling it over, he explained.

"This situation is based on our US project, one hundred percent," Jugel said.

The company's facilities in both the United Kingdom and Latvia remained profitable, he underlined, adding that the company would have two months to find a settlement with all creditors.

"We are willing to work with all stakeholders, all suppliers, all customers. We have a good, profitable business in Latvia, in the UK, and the target of the management is to protect this business with the legal protection process," he said.

While the move would delay publication of audited financial results and would mean previous projections no longer apply, Jugel also said "This has no impact on the workers, on the workforce," he said.

Valmiera Glass's expansion into the US was previously heralded as a great success story, as previously reported by LSM

An annual general meeting of the company next week will further discuss the matter.

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