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Livani Glass hopes for foreign rescue

According to company chairman, Imants Buss, insolvent Latvian glass firm Livani Glass hopes to improve its economic position with the entry of a foreign partner. German firm Herner Glas buys Livani Gl…

According to company chairman, Imants Buss, insolvent Latvian glass firm Livani Glass hopes to improve its economic position with the entry of a foreign partner. German firm Herner Glas buys Livani Glass products worth DM 120-150 thousand monthly. The glassware company“s creditors will convene early in 2001 to decide whether to rehabilitate the company or to institute bankruptcy proceedings. Creditors include national gas supply company Latvijas Gaze, which has threatened to cut the gas supply to Livani Glass. Buss said that the purchase of a new glass-melting furnace had contributed to the company“s financial decline but pointed out that without the new equipment, production would have already stopped. The crisis was also attributed to fluctuations of euro and German mark exchange rates which had an adverse effect on the value of part of Livani Glass exports.

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