Amber Latvijas balzams seeks termination of legal protection process

Beverage producer Amber Latvijas balzams has filed an application with the Riga City Court to terminate its legal protection process (TAP). The company's restructuring plan, submitted on September 28, failed to secure the necessary approval from the required group of creditors.

The proposed plan aimed to fully repay secured creditors, including the State Revenue Service (VID), as well as fully cover the principal debts of suppliers and service providers. Bondholders' claims were to remain in full. The plan was based on a four-year cash flow forecast and included additional creditor control mechanisms.

The company noted that a third party gained significant influence within the secured creditor group by purchasing a majority of claims from Luminor Bank and UBS. Amber Latvijas balzams claims that conditions proposed during the negotiation process would result in a substantial loss of company control to a specific creditor. Additionally, unsecured creditors, specifically bondholders, requested significant debt settlements from the company's funds, a move the board rejected due to potential negative impacts on other creditors. The company has alerted legal authorities to circumstances that may indicate coordinated actions aimed at seizing control of the enterprise.