Latvian Balsam - is that it? Its manufacturer has found itself in a debt pit 0 11

While the company's management explains the problems with cyberattacks and the situation in Russia, the financial reports of the enterprise indicate that large loans were provided to other companies in the group. Just last summer, the enterprise had no debts, but now they have been growing for several months in a row.

In November, the State Revenue Service (SRS) began collecting tax debts from the enterprise. The company's management then promised that the debt would be repaid, but three months later, the situation has even worsened. It is now known that the court has initiated a legal protection process for the enterprise.

What does this mean in practice? Such a process is initiated when a company is no longer able to repay debts on time and seeks to obtain time through the court to organize its finances in order to avoid bankruptcy. Company representatives declined to be interviewed, but in a public statement, this step was justified by financial difficulties following the alienation of assets in Russia and a cyberattack that caused cash flow problems and delays in excise tax payments.

However, the company's activity report indicates that "Amber Latvijas balzams" has lent several tens of millions of euros to related companies, meaning those in the same group, although auditors had previously warned that part of these debts would not be recoverable. The situation was further exacerbated by the announcement of liquidation by the American company "Stoli Group" in mid-January. This enterprise of the "Amber Latvijas balzams" group provided a significant portion of orders, so its bankruptcy may directly affect "Amber Latvijas balzams"'s ability to settle with the state and other creditors.

Shares of "Amber Latvijas balzams" are listed on the Baltic Exchange, where the company has been assigned special supervision status. This is a warning signal for investors that the situation at the enterprise has become unpredictable. Due to these concerns, the company's share price has literally collapsed by more than 50% over the past month.