Largest shareholder of the public joint stock company “Ventspils nafta” (VN) – offshore company operating in Cyprus “Euromin Holdings (Cyprus) Limited” that publicly calls itself a company of the “Vitol” Group, implements aggressive policy aimed at deliberate destruction of the JSC “Latvijas kuģniecība” (LK) subsidiary company “LASCO Investment” Ltd. It was clearly stated by the “Euromin” activities during the VN regular shareholders’ meeting of 11 November 2010, when the said shareholder maliciously used its majority in VN and was the only one who voted against recall of the Management Board and Supervisory Council controlled by “Euromin”, as well as against restructuring of the transaction with “LASCO Investment”.

 

Although the LK subsidiary company “Latmar Holdings Corporation” that in the same time is shareholder of VN, within the term and according to procedure prescribed by law had submitted to the Management Board of VN all necessary documents and shareholders title-deeds in order to include the issue about recall of the Management Board and Supervisory Council, as well as restructuring of the said transaction in agenda of the VN shareholders’ meeting of 11 November 2010, the VN Management Board controlled by “Euromin” failed to do so, thus breaching provisions of the Commercial Law. Only after a repeated application submitted by “Latmar” to chairman of the VN shareholders’ meeting at the venue of the meeting the issues were finally reviewed.

 

We would like to emphasize that only “Euromin” voted against recall of the Management Board and Supervisory Council controlled by “Euromin”, as well as against restructuring of the transaction with “LASCO Investment”, although 97.5% of the VN voting share capital was represented in the meeting with participation of 14 representatives of various shareholders.

 

The action of “Euromin” once more demonstrates the actual goals of this VN largest shareholder that obviously are aimed at deliberate destruction of the LK subsidiary “LASCO Investment”, and this time motivation of “Euromin” has been proved by actual evidence during the VN shareholders’ meeting. We would like to remind that pursuant to legislation of the Republic of Latvia deliberate bringing of a company to bankruptcy is a criminal act.

 

LK has repeatedly indicated that the LK shareholder VN shall be held responsible for the limited solvency problems of “LASCO Investment” Ltd, since the irresponsible and unprofessional activities of the VN management have caused losses to shareholders of both public joint stock companies and in the result can lead to insolvency of “LASCO Investment” Ltd.

 

It is the categorical unwillingness of the VN to consider the actual economical situation and to review provisions of the real estate purchase transaction concluded two years ago between VN and LK subsidiary company “LASCO Investment” Ltd that was the reason for commencement of “LASCO Investment” Ltd out-of-court legal protection process. “LASCO Investment” Ltd has already paid to VN the largest part of the sum that exceeds LVL 80 million allowing the VN shareholders to receive dividends in amount of LVL 50 million at the end of 2009, which in the result of the said transaction could not be claimed by the LK shareholders.

 

 

 

 

Additional information:

Ģirts Apsītis

Adviser of the Chairman of the Management Board

Latvian Shipping Company

Phone: +371 67020126

E-mail: ir@lscgroup.lv