Amber Latvijas balzams Shareholders to Vote on Starting Insolvency Proceedings on 3 November

The board of Riga-based beverage producer AS Amber Latvijas balzams has called a shareholder meeting for 3 November to consider starting insolvency proceedings, the company told the stock exchange. The step follows creditors' refusal to approve the company's legal protection process (LPP) plan, a mechanism intended to help a company restore solvency by reaching agreement with its creditors.

Meeting agenda

The meeting will take place at 11:00 on 3 November at the company's premises at 160 Aleksandra Čaka Street, Riga, and also via electronic means. Shareholders will consider the consequences of ending the legal protection process, the company's options for continuing operations, and the initiation of insolvency proceedings. The decision will be taken in line with shareholders' proposals. They are also expected to approve the 2025 annual report, the dependency report, the remuneration report and the corporate governance statement.

Background

The plan was submitted to creditors on 28 September. It provided for full payment of the principal debts of secured creditors, including the State Revenue Service, and full coverage of principal debts to suppliers and service providers. Bondholders' claims were to be retained in full. The plan was based on a four-year cash flow forecast and included additional creditor control mechanisms.

The plan did not obtain the required approval from creditor groups, so on 5 October the company filed an application with the Riga City Court to terminate the LPP. The company says a third party gained significant influence in the secured creditors' group by buying a majority of the claims against it held by Luminor Bank and UBS. The State Revenue Service also supported the plan.

Company figures

In 2025 the company's turnover was 74.464 million euros, 4.8% lower than a year earlier, while profit fell 31.5% to 836,359 euros. The company belongs to the alcoholic beverage group Amber Beverage Group, headquartered in Luxembourg and owned by Jurijs Šefler. It was registered in 1991, has share capital of 10,495,660 euros, and its shares are listed on the second list of Nasdaq Riga.