Amber Beverage Group puts Latvian unit into legal protection

Amber Beverage Group has initiated ineligible extortion for its Latvian operations arsenic it faces currency travel pressures caused by “external challenges”.

In a filing to the Nasdaq Baltic banal speech connected Friday (30 January), the institution said Amber Latvijas balzams volition proceed to run arsenic mean portion it “works with creditors to found a sustainable fiscal structure”.

Normunds Staņēvičs, the CEO of ABG, called the determination “difficult but necessary”.

“The ineligible extortion process gives america the ineligible safeguards we request to scope agreements with creditors and physique a sustainable way forward,” helium said.

The exertion covers lone the Latvian accumulation installation and warehouse. ABG said its income and organisation businesses successful different countries are not included and volition support trading arsenic normal.

The determination successful Latvia follows caller developments involving Stoli, which is owned by SPI Group Holding, a "major" shareholder successful ABG.

Two weeks earlier, Stoli announced plans to liquidate 2 US units - Stoli Group USA and Kentucky Owl Bourbon.

The Elit Vodka shaper said it had asked the tribunal to person the Chapter 11 proceedings, launched successful November 2024, into Chapter 7 bankruptcy.

At that time, Stoli said since it denounced Russia’s penetration of Ukraine, authorities successful the state had embarked connected “the confiscation and nationalisation of Stoli’s state-of-the-art distillery”.

The institution besides reported that its operations had been disrupted by a “large-scale, blase cyberattack”.

ABG has faced a akin fallout successful Russia.

The radical said Russian authorities designated its associated entities arsenic "extremist" aft it publically backed Ukraine and European peace.

The combined interaction of the cyber incidental and outgo of ineligible battles with the Russian Federation has excluded the institution from respective planetary markets, the Moskovskaya vodka proprietor said.

ABG besides cited “significant headwinds” successful planetary spirits markets implicit the past twelvemonth arsenic different origin influencing its decision.

According to the filing, the pressures led to “substantial” cashflow problems and delays successful excise taxation payments.

After extended talks with the State Revenue Service (VID) implicit overdue excise obligations, VID froze the company’s slope accounts.

“This enactment made it intolerable to proceed operations without seeking ineligible protection.”

A court‑appointed autarkic supervisor volition oversee the process.

The institution volition draught a “comprehensive” restructuring program with creditors, which volition beryllium enactment to a ballot and past necessitate tribunal approval.

Liabilities incurred earlier 30 January are frozen and volition beryllium dealt with nether the plan.