RIGA, Oct. 4 (Xinhua) -- The Latvian government is expected to name the new investor of ailing steel company KVV Liepajas Metalurgs by the end of October, Vladimirs Loginovs, chairman of the Latvian Privatization Agency, said on public radio Wednesday.
Citing unconfirmed reports, LETA news agency informed earlier that the steelworks in Latvia's southwestern city of Liepaja might be sold off to Igor Shamis, a millionaire from Russia, whose United Group sought to acquire Liepajas Metalurgs already in 2014 but was outbid by Ukraine's KVV Group.
Last week, Shamis registered a new company in Latvia, apparently for the acquisition deal.
The head of the privatization agency indicated, however, that the steel company's insolvency administrator, Guntars Koris, was still holding talks with several potential investors.
"He continues to communicate with the investors on the terms of the deal and the contract. After that, he will approach us as one of the secured creditors. Then all the secured creditors will take a decision," Loginovs said, adding that the Latvian government might decide on the sell-off deal in late October.
Ukraine's KVV Group acquired Liepajas Metalurgs in 2014, promising to pay 107 million euros (126 million U.S. dollars) in several installments for the insolvent metallurgy company.
After struggling with financial troubles for months, KVV Liepajas Metalurgs halted production in March 2016 and laid off some 300 workers. About 100 workers remained to keep the steel plant on "standby mode." The Ukrainian investor never paid the full price for the acquisition and the company ended up in the Latvian government's control again.
In September 2016, the Liepaja city court ruled Liepajas Metalurgs insolvent. (1 euro = 1.18 U.S. dollars) Enditem
