AS VALMIERAS STIKLA ŠĶIEDRA files for legal protection proceedings to ensure sustainable continuation of Group-level operations
Summary
In order to secure the implementation of debt liabilities deriving from the Credit line Agreement, the Company issued a guarantee for the benefit of Bank A. Since the US facility failed to meet the obligations deriving from the Credit line Agreement, Bank A, on the basis of surety liabilities established beforehand, has requested the Company to immediately repay the loan together with interest accrued in the amount of USD 3 013 148.92 (three million thirteen thousand one hundred forty eight US dollars and 92 cents) on June 10, 2019. The operations of the Company in Latvia and its subsidiary in the UK have consistently generated strong cash flows and profitability through recent years. It is envisaged that this would require reorganization of the US facility activities, as well as optimization of the cash flow and strengthening the balance sheet of the Company. In parallel it cannot be ruled out that a thorough restructuring of the Phase 2 operations (with both existing and future potential stakeholders) will in time enable a successful utilisation of the facility.