As it was notified already before, on August 16^th, 2019 Riga City Vidzeme Urban Court resolved (a) to satisfy the application of legal protection proceedings of AS „Rīgas kuģu būvētava” (Company); (b) to implement the legal protection proceedings (Proceedings) of the Company; (c) to approve the plan of measures of the legal protection proceedings (Plan) of the Company; and (d) to set the period of 2 (two) years for implementation of the legal protection proceedings of the Company, effective from August 16^th, 2019.

According to the judgement of Riga City Vidzeme District Court of May 15^th, 2020 in civil case No.C30516819, the amendments to the Plan were approved (the version of April 06^th, 2020), by setting the term of the implementation of the Proceedings to 4 (four) years by accounting of the term as from August 16^th, 2019, according to the judgement of Riga City Vidzeme District Court of January 25^th, 2021 in civil case No.C30516819, the amendments to the Plan were approved (the version of December 23^rd, 2020), by setting the term of the implementation of the Proceedings to 5 (five) years by accounting of the term as from August 16^th, 2019, in turn, by the decision of Riga City Vidzeme Suburb Court of September 17^th, 2021 in civil case No.C30516819 the amendments to the Plan were approved (the version of August 12^th, 2021), which provides the reduction (cancellation) of unsecured creditors’ claims in the amount of 10% (ten per cent) of the principal debt amount, hereinafter all amendments together referred to as the Amendments.

The Company thanks most creditors for the understanding of the financial position of the Company and for the provided support by approving implementation of the Plan and the Amendments.

The Company informs that on August 15^th, 2022, the first 3 (three) years of the implementation of the Company’s Plan ended, within the framework of which, until now, the Company has been able to cover more than 99% (EUR 6 675 884.72) of secured creditors’ claims that must be covered under the Plan and almost 20% (EUR 1 395 598.23) of unsecured creditors’ claims that must be covered under Plan.

The Company’s financial situation is currently stable, however, the amount of pre–planned payments to cover creditors’ claims in the 4^th and 5^th year of the Company’s Plan and Amendments has turned out to be overly optimistic in relation to the currently forecasted Company’s cash flow, moreover, in the context of the expected global energy resource crisis in this and possibly also the next winter season, the Company has justified doubts about its ability to implement Plan and Amendments in accordance with the current amendments to the Plan (the version of August 12^th, 2021), therefore on September 14^th, 2022 the Company has repeatedly developed amendments to the Plan, providing for the following changes:

specify the Company’s planned revenues and expenses, as well as the schedule for covering creditors’ claims, providing for:

a.     the remaining liabilities provided by the Plan (not amending the total amount of the liabilities to be covered) to the secured creditors will be satisfied within 60 months as from the date when the judgement of the court on implementation of the Plan became effective, i.e., within the next 24 months;

b.     the remaining liabilities provided for by the Plan (not amending the total amount of the liabilities to be covered i.e., reducing the total amount of liabilities to be covered by 10%) to the unsecured creditors will be satisfied within 60 months as from the date when the judgement of the court on implementation of the Plan became effective, i.e., within the next 24 months.

In compliance with the provisions of the Insolvency Law in October 2022 the Company has coordinated its developed amendments to the plan of measures of the legal protection proceedings with creditors of the Company and the amendments to the plan of measures of the legal protection proceedings of the Company were submitted for approval to the court.

Hereby the Company informs that on November 01^st, 2022 Riga City court resolved to approve the amendments to the plan of measures of the legal protection proceedings of the Company in the version of September 14^th, 2022.

The Company acknowledges that amendments to the plan of measures of the legal protection proceedings as approved by the court will allow maintaining of the current profile of operations. At present the Company continues its economic operation and fulfils financial liabilities towards its creditors.

The Company is thankful to its creditors for the understanding and support during the implementation of the plan of measures of the legal protection proceedings.

Enclosed – the plan of measures of the legal protection proceedings with the amendments in the version of September 14^th, 2022 approved by the court (as to information specified in the appendixes is considered as confidential, appendixes are not enclosed)

The Board of Directors of AS „Rīgas kuģu būvētava”