OREANDA-NEWS. October 07, 2011. At the extraordinary sitting, the government accepted the agreement on future funding and management of airBaltic drafted by the Ministry of Transport and it was signed. Singing of the agreement provides the state with real control over the company.

The agreement was signed between the Republic of Latvia in person of the Minister for Transport, “Baltijas Aviacijas sistemas” Ltd. (BAS), JSC “Latvijas Krajbanka”, AB Bankas “Snoras”, AKB ”Investbank”, Taurus Asset Management Fund Limited, “Trasatlantic Holdings Company S.A.” and “KD Jet” Ltd.

The agreement provides for proportional participation of the state in increasing the fixed capital of airBaltic – granting of the state loan to airBaltic in the amount of LVL 16 million not later than by October 14, 2011 if the following pre-condition are met: the application for legal protection at the Riga Regional Court is revoked; 59.110 shares are fully redeemed according to decision made at the shareholders’ meeting held on 30.04.2010; the airBaltic statutes in new wording are approved.

The agreement provides for termination of the consolidated shareholders’ agreement signed on 30.04.2010. A new council of airBaltic experienced in management and supervision of companies performing economic activities of similar volume is being elected.

The agreement provides for dismissal of the former board member B.Flick from the post and election of the new Board in composition of three people. The trademark of airBaltic has been retrieved and pledged for the benefit of the state to ensure repayment of the state loan.

The agreement provides for BAS funding in the amount of LVL 14 million. The liabilities of airBaltic to BAS shall be consolidated. The consolidation of the subsidiaries of airBaltic and BAS is planned, transferring the outsourced services back to airBaltic. The corporative structure and management of investment properties shall be improved. The airBaltic’s restructuring plan and business plan hall be prepared within two months As regards the financing of restructuring, the signed agreement provides for proportional increase of the fixed capital of airBaltic where the state-owned share is LVL 57.6 million if all previous conditions are met.