RIGA, Jan 31 (LETA) - Rigas Kugu Buvetava (Rigas KB) shipyard in the first nine months of last year turned over EUR 180,796 which is 21.4 times less than in the respective period a year ago, while the company's profit was EUR 146,804 in contrast to a loss a year ago, according to the company's unaudited financial report submitted to the Nasdaq Riga stock exchange.

In the first nine months of 2018, Rigas KB posted EUR 3,867,295 in turnover and EUR 1,744,485 in loss.

As reported, the audited turnover of Rigas KB shipyard in 2018 reached EUR 4.028 million, down 68.6 percent from 2017, while loss rose almost eight times to EUR 2.372 million.

In 2018, the Management Board of the Company, based on the accurate analysis of the situation and following consultations with the Supervisory Board of the Company and auditors, resolved to apply to the court with the request to initiate the legal protection proceedings because, in the result of various conditions, including due to reasons not dependent on the Company, the current assets decreased.

The Company considered that, although the legal protection proceedings were a very serious step, still this was the only correct step for dealing with the complicated situation caused by various events.

At the end of 2018, the State Revenue Service sent collection orders to credit institutions where the Company had current accounts because of the debt to the state budget, thus preventing the Company to make settlements with other creditors, except the State Revenue Service, and this resulted in a major delay of payments to other creditors.

Moreover, more than 200 litigations, of which most were related to the collection of wages, were started against the Company.

In the result of the evaluation of the current situation and the possibilities of the Company, as well as taking into account that the debt obligations continued increasing in 2019, the Company adopted a repeated decision to apply to the court and to request the initiation of the legal protection proceedings, in the result of which, on March 20, 2019 Riga City Vidzeme District Court resolved to initiate the legal protection proceedings of the Company.

By the judgement of Riga City Vidzeme District Court dated August 16, 2019, the application of the legal protection proceedings of the Company was satisfied the implementation of the legal protection proceedings of the Company was announced the plan of measures of the legal protection proceedings of the Company was approved, and the term for implementation of the legal protection proceedings of the Company was set to two years by starting the counting of the term as from August 16, 2019.

The Company attests that the plan of measures of the legal protection proceedings as prepared and submitted to the court will allow maintaining of the current profile of operations, in particular, ship repair, at the same time developing also new types of business activity in order to use the infrastructure of the Company as efficiently as possible.

According to the approved plan of measures of the legal protection proceedings, the Company has paid off the debt of wages to its former and current employees and has also fully paid the tax debt to the state budget.

Also starting from the second month of the legal protection proceedings, the Company has gradually started covering its financial liabilities whose terms of repayment or performance have set in prior to the start of the legal protection proceedings or will set in during the legal protection proceedings. The Company points out that its financial liabilities towards secured creditors will be performed during the first six months and towards unsecured creditors will be performed during twenty four months as from the moment of approval of the plan of measures of the legal protection proceedings.

The Management Board of Rigas KB proposes to cover the net loss of 2018 from undistributed profit of the preceding and next years.

Rigas KB is quoted on the Secondary List of the Nasdaq Riga stock exchange. Its largest shareholder is Remars-Riga which is part of Eiroholdings group.

© Pakistan Press International, source Asianet-Pakistan