Banner
Ukraine's KVV Group to buy Latvia's insolvent steelmaker - September 11

Reuters reported that Ukraine's KVV Group has offered to buy Latvia's insolvent steelmaker Liepajas Metalurgs for EUR 107 million.

 

Liepajas Metalurgs, the only producer of rolled steel in the Baltic countries filed for bankruptcy last year, blaming weak demand in Europe.

 

Mr Haralds Velmers the insolvency administrator said that “The KVV Group has provided a clear plan for re-launching the plant's operations. KVV Group is going to pay the sum over 10 years.”

 

Latvia's government, which had to repay EUR 74 million under a loan guarantee to Italian bank UniCredit after the company could not cover its liabilities, has welcomed the offer.

 

Mr Laimdota Straujuma PM of Latvia said that "It's important that (the buyer) wants to invest in the company and to resume production."

 

 

 

(Source - www.steelguru.com)