The ruling revokes the August 2014 decision of the Riga Central District Court which approved the legal protection proceedings and plan for Winergy, appointing Janis Jurkans as its administrator.
According to the Supreme Court, the Riga Central District Court did not take into consideration objections voiced by the company's creditors, which suggested that Winergy was possibly involved in fictitious deals with the company Firepower. Moreover, the administrator failed to carry out a thorough analysis of the circumstances of the case to present an objective report.
Thus the case will have to be reviewed again by the lower courts as the Supreme Court's decision cannot be appealed.
Winergy told LETA that the Supreme Court was obviously acting in the interests of one of the prime creditors of the company, Norvik banka, and repeatedly emphasized that the legal protection proceedings were a major precondition for the company to be able to continue operations and repay debts to all of its creditors, including Norvik banka.
Winergy and Norvik banka have been involved in a lengthy dispute over a total of €18.5 million that the bank issued to the company in loans in 2012.