Two final bidders for mothballed metalworks

Take note – story published 9 years ago

Talks on the sale of bankrupt metalworking forge Liepājas metalurgs will proceed with two final bidders on the project – Luxembourg-based United Group, controlled by Russian millionaire owner Igor Shamis and Ukrainian firm KVV Group, bankruptcy administrator Haralds Velmers told the media Friday.

Letters of intent for the acquisition of the shuttered plant have been signed with both bidders, but the administrator predicted that which of them would get the exclusive right to seal the deal would be known within a week’s time.

Talks so far have vetted the legal structure of the deal, the final sum, payment schedules and terms, as well as the amount of the first down payment to be due.

The sale agreement requires the buyer to guarantee the financial and technological resumption of activity at the plant by the end of this year.

The deal’s insured creditors – the state and commercial banks Citadele and SEB banka – will coordinate with the winning bidder upon its deposit of €1m in security funds.

Velmers pointed out that both bidders have considerable experience in the metalworking sector and clear plans for renewing production at Liepājas metalurgs this year. Likewise their documentation of available financial resources is credible, he said.

Velmers added that the responsible state authorities are currently assessing the reputations of both companies. The administrator of the bankrupt plant said he had no qualms that either of them might wind up on the list of companies targeted by third-level EU sanctions against Russia for its aggression in Ukraine.

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