The Riga City Kurzeme District Court has approved amendments to JSC "VEF Radiotehnika RRR" legal protection process action plan (September 30, 2016 version) on November 03, 2016.
Changes in the legal protection process action plan:
On the legal protection plan editorial compilation time, a company has already made payments to creditors for a total amount of EUR 1`844`715,37 (completely repaying the debt for the SRS, SEB Bank and also by reducing the debt against unsecured creditors for 162'516,91 Euro.)
Based on the Insolvency Law Article 40 Part 4 of the fourth paragraph of Article 38 of the Insolvency Law and Part 2, indicate that legal protection is planned to settle with creditors in the amount of EUR 2'138'675.46 of which consists of, in accordance with this plan follows below the amounts payable of EUR 293'960,09 extent and in accordance with the amounts already paid, in accordance with previous versions of the plan (EUR 1'844'715,37).
According to the Insolvency Law Section 40 of Part 4 of the fifth paragraph, note, that the forecast of commercial revenues during the legal protection process is to revenue of EUR 5'106495.65 respectively. Compared to the plan version from 18.04.2016. revenue decreased by EUR 660988.84, as production realization will take a long time until the funds will be available for commercial company and could divert the unsecured creditors' claims for repay, and a significant delay in the real estate Kurzeme prospectus 3D Riga sale that funds obtained was to be transferred also for faster restoration of the production process .
Having regard to the action plan in paragraph 7 of the facts about the fall in revenue, citing the fact that the delay in the realization of real estate transactions throughout the process period, but they were also implemented, will not be able to cover the remaining principal amount of unsecured creditors' claims at 100%, therefore, it is expected to pay less than 80% by the end of the implementation of the plan, covering 20% of the principal claims of the unsecured creditors .
Subject to paragraph 2 of Article 38 of the Insolvency Law requirement of proportional debt relief, the principal reduction applies to all of commercial creditors as a result of the above obligations under the deferral method to the period after the deadline for implementation of plan will no longer be applied.
