Amber Latvijas balzams' accounts remain blocked, but production continues, LSM reports on 16 October. LSM cites a tax debt of approximately €28 million. Creditor MBO Beverages is calling on the majority shareholder and ultimate beneficial owner to cover it in full or in part and step up efforts to recover debts owed by related parties.
What has happened to the legal protection proceedings?
The company's announcement of 13 October confirms that its legal protection proceedings (TAP) ended on 9 October and that the State Revenue Service (VID) has reinstated the blocking of its bank accounts. The company is seeking a solution to access the funds needed for its operations. In its announcement of 6 October, it explained that the TAP plan had not secured the required creditor approval.
A business partner needs to distinguish between three questions: whether the company is producing goods, whether it can freely make payments and what its legal status is. Confirmation of one does not answer the others.
What changes is the creditor proposing?
In MBO's published position, it proposes a supervisory board with representatives of secured creditors, unsecured creditors and the majority shareholder. The creditor links the difficulties to the failure to recover debts owed by related parties. This is the assessment of an interested party. The company, meanwhile, attributes its cash-flow problems to a market downturn and a decline in export orders.
Publishing the proposal does not mean that an agreement has been reached on financing, governance or a payment schedule. What matters to a supplier is a specific payment arrangement that can be applied to its contract.
What does the €91.61 million adjustment actually mean?
BDO's report accompanying the 2025 financial statements describes a retrospective expected credit loss adjustment for receivables from and loans to related companies: retained earnings as at 1 January 2024 were reduced by €91.61 million. The auditor issued a disclaimer of opinion because it could not obtain sufficient audit evidence.
The accounting adjustment must not be presented as evidence that this amount was withdrawn from the company's account in a single day. Nor does a disclaimer of audit opinion, on its own, establish any particular person's culpability. In practical terms, it means that the financial information and its limitations require closer scrutiny.
What do the operating results show?
In its unaudited results for the first half of 2026, the company reports revenue of €24.6 million, down 30.4% year on year, and a loss of €0.95 million. These figures describe the relevant reporting period. Its ability to make payments in October must be assessed separately: how much cash is actually available, what payments are due and which receipts are still expected.
What decisions still lie ahead?
The agenda for the shareholders' meeting scheduled for 3 November includes options for the company's future, including the initiation of insolvency proceedings. Placing the matter on the agenda is not a decision declaring the company insolvent.
What should suppliers and business partners check?
The editorial team's practical checklist:
- Reconcile outstanding balances. Compile unpaid invoices, delivery documents, payment deadlines and correspondence about delays.
- Request a written payment proposal. Establish the amounts, dates and person responsible. A general promise to continue production is no substitute for a payment schedule.
- Review the risks of further deliveries. Before taking on additional commitments, consider advance payment, smaller batches or shorter payment terms in accordance with the contract.
- Follow the documents. Compare company announcements with current court and register information; do not infer legal status solely from a news headline.
This case highlights a governance question: how secure is a company's cash flow when substantial funds are tied up in receivables from group companies? Decisions on doing business with it need to consider recoverability, payment deadlines and actual access to cash.
Official information sources
- Issuer's announcement of 13 October on the blocking of accounts
- Issuer's announcement of 6 October on legal protection proceedings
- 2025 financial statements and independent auditor's report — ESEF ZIP
- Issuer's unaudited results for the first half of 2026
- Notice of the shareholders' meeting on 3 November
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