Valmieras stikla škiedra
Inside information

AS VALMIERAS STIKLA ŠĶIEDRA amends the developed legal protection process plan

AS VALMIERAS STIKLA ŠĶIEDA (registration No. 4000 3031 676, legal address: Cempu iela 13, Valmiera, LV-4201) (hereinafter, the Company) would like to announce that the Company has not fulfilled the undertakings stipulated in Company’s legal protection plan (hereinafter, the Plan):

1. to sell shares in US Subsidiary and/or ensure the alienation of its pledged property and/or to attract third-party funds for the total amount of at least EUR 35 000 000 by March 31, 2020;
2. to attract additional financial resources in the amount of EUR 5 000 000 by March 31, 2020.

The Company informs that it has made payments to all unsecured creditors in the amounts and within the terms defined in the Plan and has agreed with the secured creditors on the postponement of the implementation of the principal payment obligations with respect to January and February of the Plan until 31 October 2021.

The Company in cooperation with its secured creditors is currently in the process of finalizing amendments to the Plan and will send out the Plan amendments to all involved creditors within the shortest terms possible. The amendments to the Plan will affect only specific sections of the Plan affecting the performance of obligations to secured creditors, while the terms of payment obligation to unsecured creditors will remain unchanged.

The Company justifies the necessity to implement the referred changes in the Plan with the following conditions:  

1. On January 14, 2020, the Company convoked an extraordinary shareholders’ meeting, during which was planned to adopt a decision on the issuance of convertible bonds, thus implementing the duty to attract funds as stipulated in the Plan. On January 29, 2020, majority shareholders of the Company announced that they had commenced business negotiations with potential investors with regard to the strategic future of the Company;
2. Given the new circumstances, the decision on the issuance of convertible bonds (initiated for adoption at the extraordinary shareholders’ meeting on February 14, 2020) concurrently to negotiations with potential investors could not have been adopted; therefore, on January 31, 2020 the Company cancelled the announced meeting;
3. Only on March 2, 2020, the process of alienation of the US Subsidiary’s property in the United States of America resulted in the signing of the Asset Purchase Agreement. The fulfilment of the asset selling transaction depends on the approval adopted by the US court that is planned to be received in April, 2020. Hence, the financial means from the selling of the property of the US Subsidiary could not receive until 31 March 2020 as it is defined in the Plan.

The Company hereby clarifies that the changes to the Plan will not be made based on the current COVID-19 situation, but the effects of the situation will be taken into account in the Plan. The Company already informed about the possible impact of coronavirus (COVID-19). Announcement available HERE.

Additional information:
AS VALMIERAS STIKLA ŠĶIEDRA
Tel.: +371 6420 2216
E-mail: latvia@valmiera-glass.com
www.valmiera-glass.com