Hereby Joint Stock Company Liepājas Metalurgs informs, that the main conditions of the Plan of Measures of the Legal Protection Proceeding (LPP) foresee the following:

- The property existence of which is not necessary for business activities is expected to be sold – this includes several real estates, also movable property and capital shares in several daughter companies.

- Business activity resumption in September.

- Attraction of investor and first cash injection of LVL 10 mil. by September 30, 2013 for the sake of working capital to restart of the business activity of the company.

- 50% of unsecured creditors claims against the Company will be satisfied in the 24^th month of LPP, and the remaining 50% is possible to exchange for shares of the JSC Liepājas Metalurgs. It is impossible, however, to exchange a 100% amount of the outstanding debt for the shares, since the total share capital of the Company makes LVL 16 981 033,-, while 50% claims of the unsecured creditors make LVL 27,27 mio., and issuance amount of the new shares cannot exceed 100% of the Company’s present share capital amount. The difference of LVL 11 mio. will make a mark-up value of shares.

- During the LPP period the secured creditors will receive the interest payment of LVL 8.9 mio. for the debt they provide, and the debt of the secured creditors is planned to be recovered after September 30, 2015.

- Optimization of the number of employees.

- Increase of the average salary up to LVL 682,- in 2015.

- Termination of sponsorship activities.

The JSC Liepājas Metalurgs is also informing, that for the time being it is able to cover expenses related to the maintenance of the production facilities, but unable to cover costs, needed for their launching.

Līga Šenfelde
Assistant to the Chief Economist
63455926, shenfelde@metalurgs.lv