There is an outstanding principal debt of more than EUR 39 million due to be paid by SIA LASCO Invetment to JSC “Ventspils nafta” (VN) following the sale of SIA “LASCO nekustamie īpašumi” and JSC “Preses names” on December, 2008. VN has repeatedly proposed to SIA LASCO Investment to extend the debt repayment term, thus avoiding the company's insolvency risk in the due to funds owed to VN. On Tuesday, November 16, VN sent yet another proposal to SIA LASCO Investment; this time to extend the debt payment term till December 31, 2011. VN believes that the SIA LASCO Investment Management Board does its utmost to reject VN's proposal, which was made in good faith and is avoiding extending the debt repayment term. Therefore one could speculate that SIA LASCO Investment is deliberately failing to extend the debt repayment term in order to use the outstanding debt for other goals, for example, to initiate insolvency of the company. VN underlines that the act of maliciously and intentionaly bringing the company to insolvency is a criminal act. VN, as one of major shareholders of the JSC Latvijas Kugnieciba (LK), warns that it will address its concerns to the institutions of State, seek compensation and requests that these institutions investigate SIA LASCO Investment and also LK officials due to their plans to drive the company to insolvency as a result of their liabilities with VN. VN has repeatedly (in June and October this year) proposed to extend the debt repayment term until the end of this year. Therefore VN refutes entirely all the statements of SIA LASCO Investment and LK that VN should be blamed for bringing the company to insolvency. VN believes that all the public statements of SIA LASCO Investment saying that VN should be blamed for company's insolvency are false and misleading. VN has sent its letter offering to extend the debt repayment term until December 31, 2011 to the Board of LASCO Investment, the administrator of the company Olavs Cers, the Management Board and the Supervisory Council of LK, as well as JSC NASDAQOMX Riga and Financial and Capital Market Commission. Ventspils nafta Zane Bojāre JSC „Ventspils nafta” PR Manager E-mail: zane.bojare@vnafta.lv Phone.: 67821691; 29706733