The Management Board of AS VALMIERAS STIKLA ŠĶIEDRA (‘the Company’) this morning filed for commencement of legal protection proceedings (‘LPP’) in order to ensure sustainable continuation of group level operations. This is despite ongoing dialogue with a number of interested parties relating to potential acquisition of partial or complete operations at its US-based majority-owned facility.
Chairman of the Management Board Stefan Jugel, stated: “Despite multiple innovative approaches by management at our US-based facility, it has continued consuming cash from other parts of the Company. At the same time our Latvian and UK operations have retained healthy levels of cash generation and profitability. The time has come to re-focus our resources and we have therefore requested a formal way to engage with all of our creditors.”
The aim of the LPP process is to allow the Company with creditor consent to restructure its liabilities in an unhindered way by allowing continuous operation of its key production lines and gain time to reach agreement with its creditors on the procedure of satisfying their claims.
Successful future development of the Company remains a clear goal of the Management and Supervisory Boards.
A press conference in English and Latvian will be held later today by AS VALMIERAS STIKLA ŠĶIEDRA and represented by Chairman of the Management Board Stefan Jugel.
Timing/location: 13:00 EEST (UTC+3) on June 17, 2019 at the Riga offices of Eversheds Sutherland Bitāns, located at Lāčplēša iela 20a (6th floor), phone +371 67280102.
A webinar will also be held on June 17, 2019 at 14:00 EEST (UTC+3). Further details can be found on the company’s announcements page on Nasdaq Riga’s website.