The beverage producer AS Amber Latvijas balzams has submitted an application to the Riga City Court seeking the initiation of a legal protection (restructuring) process, the company said on Friday in a disclosure to the Nasdaq Riga stock exchange.
The application has been filed in order to restructure the company’s financial obligations. The purpose of the legal protection process is to safeguard the company’s operations while working with creditors to establish a sustainable financial structure, the company explained.
Amber Latvijas balzams also stressed that it will continue normal business operations during the legal protection process.
The application applies only to the Latvian company and its warehouse operations. The group’s sales and distribution companies in other countries are not affected, and their activities will continue as usual, the statement said.
According to the company, the decision to seek legal protection was taken following the divestment of Amber Beverage Group assets in Russia and a large-scale cyberattack that targeted both domestic and international operations. The decision was also influenced by challenges in global spirits markets.
The combined impact of these factors created significant cash-flow problems,
leading to delays in the payment of excise tax. After prolonged discussions with the State Revenue Service (VID) regarding overdue excise tax liabilities, VID froze the company’s bank accounts. The legal protection process provides a structured framework for resolving all liabilities, including tax debts, through a court- and creditor-approved restructuring plan.
The company noted that all liabilities incurred up to 30 January 2026 will, in line with regulations, be frozen and addressed within the restructuring plan. Liabilities incurred from 30 January 2026 onwards will be settled in the normal course of business. Employee salaries will continue to be paid as usual during the legal protection process.
Amber Latvijas balzams said its objective is to reach agreement with creditors, including state institutions, on a restructuring plan, align a sustainable business model, and emerge from the process as a stronger company.
Management plans to complete the development and approval of the restructuring plan by mid-2026,
with the aim of exiting the legal protection process in the second half of 2027.
The legal protection application does not affect the parent company, Amber Beverage Group. The group’s sales and distribution activities worldwide will continue as normal.
“This was a difficult but necessary decision to protect our company, brands, and jobs at Latvijas balzams. The legal protection process gives us the legal safeguards we need to reach agreements with creditors and build a sustainable path forward,” said Amber Beverage Group CEO Normunds Staņēvičs.
As previously reported, Amber Beverage Group’s spirits plant in Russia was nationalised in July 2024, and the company suffered a coordinated cyberattack the following month, temporarily halting operations.
In 2024, Amber Latvijas balzams reported turnover of €78.205 million, down 20.1% year-on-year, while net profit rose 9.7-fold to €4.088 million.
Amber Latvijas balzams is part of the international spirits production and distribution group Amber Beverage Group, headquartered in Luxembourg and operating through manufacturing and distribution companies in the Baltic states and elsewhere. The group is owned by billionaire Yuri Shefler. Founded in 1991, Amber Latvijas balzams has share capital of €10.495 million, and its shares are listed on the Nasdaq Riga Secondary List.
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