September 10, 2014

Ukrainian company KVV Group has received the right to purchase core production of the insolvent joint-stock company Liepajas metalurgs, Ukrrudprom informs.

KVV Group offered EUR107 mln for Liepajas metalurgs on the condition of resuming the production this year. Since the beginning of August the negotiations about the purchase of LM were held only with two companies – KBB group and United Group registered in Luxembourg, the beneficiary of which is Russian millionaire Igor Shamis. According to HaraldsVelmers, the administrator of the enterprise, negotiations with both bidders were held about the juridical structure of the deal, the amount and schedule of payments and the amount of the down payment. The determining factor turned out to be the schedule.

The administrator noted that the sum which was offered would cover most of the claims of the secured creditors. Moreover, according to him, during the negotiations KVV Group presented clear information about its steps towards returning the enterprise to production.

Today, on September 10, LOI (letter of intent) about the intention of the Ukrainian company to sign sale and purchase agreement between September 23 and September 26 is expected to be signed with KVV Group.

KVV Group has over 2 thousand employees. The company specializes in scrap recycling, construction and metallurgy. The owners of the company are ValeriiKryshtal and EugeniiKazmin.

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