Dubeņi, 2013-02-26 15:36 CET (GLOBE NEWSWIRE) -- According to the Law on Financial Instruments Market Article 59 parts (1) and (2), the board of JSC “Grobina” informs that, in addition to the loan offers received from JSC ‘Mortgage and Land Bank of Latvia’ and ABLV Bank for implementation of the project “Construction of a new fur animal farm”, JSC “Grobiņa” was continuously searching for loan offers with more favourable crediting conditions. Consequently, the best offer for financing of the construction, as well as for re-financing of the existing loans was received from CITADELE BANK.
Therefore, 2 loan agreements have been concluded on February 20, 2013:
- Loan agreement for implementation of the project “Construction of a new fur animal farm” - amount of 3 984 041 EUR for the period until 19.02.2020, with a fixed annual interest rate 5,5% until the new farm is put into operation and annual interest rate 4,5% afterwards. JSC „Grobiņa” is planning to repay Ls 1 680 000 or EUR 2 390 424 of the CITADELE BANK loan until March 30 ,2014 using the granted co-funding received from the Rural Support Service, but the rest of the loan amount is planned to be repaid on a monthly basis according to the repayment schedule.
- Loan agreement for re-financing of the existing ABLV Bank loan – amount of 1 278 500 EUR, therefore the payment deadline has been extended from 10.10.2014. to 19.07.2015., providing that the loan is repaid on a monthly basis, according to the repayment schedule. Additionally, the annual fixed interest rate of the loan has been decreased from 5% to 4,2%.
Additionally, JSC ‘’Grobiņa’’ is continuously working on development and implementation of a new project – establishment of a brand new facilities for food preparation, which in future could provide animal food not only for JSC ‘’Grobiņa’’, but also for other farms in Latvia and Lithuania. Therefore, for implementation of this project JSC “Grobiņa” has purchased a real estate property – buildings and land in Liepaja, Brīvības 119A and Brīvības 119B for total price of Ls 150 000; as well as JSC “Grobiņa” has submitted to the Rural Support Service the project application “Establishment of a centralised facility for food preparation for fur animals ’’, within The European fisheries fund (EFF) section ‘’Processing of fishing and aquaculture products’’. The management of JSC ‘’Grobiņa’’ considers that the establishment of the above described facilities for food preparation is one of the vital conditions for development of the industry of mink breeding in Latvia. As informed before, the implementation of this project is planned to be implemented in several stages over several year time and the amount of investments would accordingly be starting from 1,5 million LVL to 5 million LVL.
Regarding the JSC “Grobiņa” legal proceedings - according to the Law on the Financial Instruments Market Article 59, parts (1) and (2), points 3. and 4., the Board of JSC ‘’Grobiņa’’ informs that a decision, dated 12.02.2013., made by the Supreme court of the Republic of Latvia, overrules the decision made by Kurzeme Regional Court, dated 04.12.2012., which terminated the legal proceedings against the former JSC ‘’Grobiņa’’ Board Members, Pēteris Laugalis and “INVEX FONDI” Ltd. regarding their activities that have caused losses and cancellation of the concluded business deals; and the case has been resubmitted for proceedings to Kurzeme Regional Court.
The Board of JSC ''GROBIŅA''
Argita Jaunsleine
Deputy chairwoman of the Supervisory board
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