OREANDA-NEWS. About the Legal Protection Proceedings application submission, to world markets held dramatic decline of fur sales price resulting to make the company's accumulated liabilities restructuring using Insolvency Law provided legal protection methods

JSC "Grobina" board informs that the world market occurred dramatic fall in fur sales price as compared with the March 2015 auction house average auction price was EUR 48.44 - March  2016 average auction price fell by 54% and amounted to only EUR 22,30. Consequently considering that at March 2016 auction was sold essential JSC "Grobina" produced skin amount ~ 78,300 skins - JSC "Grobina" planned cash flow from auction revenues lagged behind by about 2 million EUR. As the result of these developments the company is currently unable to meet in full its obligations towards its creditors. Thus, the rapid response to the situation of JSC "Grobina" management, informing the greatest public secured and unsecured creditors of AS "Citadele banka", with investment fund FlyCap support, decided to submit an application to court for the JSC "Grobina" Legal Protection Process. Consequently, on the April 5, 2016 on Court of Liepaja will be submitted a relevant application.

The Company's management and the majority of creditors' view, legal protection process will allow the continuation of production and postponing the payment of debts in time for legal protection proceedings plan, restore its ability to settle its accrued liabilities. As already shown the world's auction houses statistics, fur price fall in the world is temporary in nature (eg. 2008 / 2009 year auction average price was EUR 28.20, but in the 2009/2010 season – EUR 36.80 and 2010, - 2012 seasons - already 42.40 / 55.40 EUR for the skin), as a result of the company management and the majority of creditors' view, during the legal protection process plan, the fur prices on world markets will recover at least 2009/2010 growing season level.

After the court decision on the JSC "Grobina" legal protection process, management of the Company without changes will continue to ensure production as usual and at the same time stipulated by the law will develop and agree with its creditors specific legal protection process plan, applying to the Insolvency Law provided legal protection methods.