Located in Riga on Chaka Street, the distillery 'Amber Latvijas balzams' has filed a petition for the commencement of the legal protection process with the Riga City Court, according to a statement from the company received on Friday by the 'Nasdaq Riga' exchange.
The legal protection process is necessary for the company to restructure its financial obligations.
The management of the distillery reported: "The decision to seek legal protection followed the alienation of assets of 'Amber Beverage Group' in Russia and a large-scale cyberattack, the company stated. The decision was also influenced by problems in the global alcoholic beverage markets."
According to the company, the combination of these factors led to significant delays in excise tax payments. After prolonged negotiations with the State Revenue Service (SRS), the company's bank accounts were frozen.
Obligations arising from January 30, 2026, and onwards will be settled in the course of normal operations. During the process, employees will receive their salaries as usual.
The company's management plans to approve a plan by mid-2026 to exit the legal protection process in the second half of 2027.
"This was a difficult but necessary decision to protect our company, brands, and jobs at 'Latvijas Balzams'. The legal protection process provides us with the legal safeguards needed to negotiate with creditors and return to a sustainable development path," said Normunds Stanovich, CEO of 'Amber Beverage Group'.
In July 2024, the 'Amber Beverage Group' distillery in Russia was nationalized, and the following month, the company was subjected to a coordinated cyberattack that led to a temporary suspension of operations.
'Amber Latvijas balzams' is indirectly owned by Russian-born billionaire Yuri Sheffler.
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