JSC “Amber Latvijas balzams” Files for Legal Protection Process (TAP) to Restructure Financial Obligations
JSC “Amber Latvijas balzams” announces that it has filed for Tiesiskās Aizsardzības Process (TAP / Legal Protection Process) at Rīgas pilsētas tiesa (Riga City Court) on January 30, 2026. This is a voluntary legal restructuring process designed to protect the business while the company works with creditors to establish a sustainable financial structure.
JSC “Amber Latvijas balzams” will continue normal operations throughout the TAP process. We intend for production to continue during the TAP process and are working to maintain supply to customers, employees continue their work. TAP is a legal tool that protects ongoing business operations while providing breathing space for financial restructuring.
Scope of Filing
This TAP filing applies only to JSC “Amber Latvijas balzams” – the Latvian production facility and warehouse operations. Amber Beverage Group sales and distribution companies worldwide are unaffected by this filing and continue normal operations.
Background and Rationale
The decision to file for TAP follows a series of external challenges that have impacted the company's cashflow:
Following Amber Beverage Group's public support for Ukraine and European peace, Russian authorities designated its associated entities as "extremist" and shortly afterwards the Group was hit by a sophisticated large-scale cyber attack which targeted its local and international operations. Remediation of the effects of this attack is ongoing today. The impact of this, combined with the significant cost of ongoing legal battles with the Russian Federation, has substantially impacted operations and shut the company out of multiple international markets.
The global spirits market has experienced significant headwinds over the past year. Major producers worldwide have reported declining volumes, with key export markets particularly affected. Industry analysts have documented changing consumer preferences, economic pressures on discretionary spending, and inventory corrections throughout distribution channels.
These combined pressures created substantial cashflow challenges, leading to delays in excise tax payments. After extended negotiations with the State Revenue Service (VID) regarding overdue excise tax obligations, VID froze the company's bank accounts. This action made it impossible to continue operations without seeking legal protection. TAP provides a structured framework to address all obligations, including tax liabilities, through a plan that will be approved by creditors and the court.
About The TAP Process
TAP (Tiesiskās Aizsardzības Process) is Latvia's legal framework for corporate restructuring. It is designed to allow viable businesses breathing space to restructure their debts while continuing operations under court supervision. This is not liquidation – it is a reorganization tool.
Upon filing, a statutory moratorium takes effect that:
- Suspends enforcement of judgments against the company
- Prevents creditors from initiating insolvency proceedings
- Prohibits creditors from terminating agreements based solely on the TAP filing
- Pauses contractual penalties and late payment interest on pre-TAP obligations
The court will appoint an independent supervisor to oversee the process. The company will develop a comprehensive restructuring plan in consultation with creditors. Creditors will vote on the plan, which must then be approved by the court.
Treatment of Obligations
Obligations incurred before January 30, 2026, are frozen by law and will be addressed through the restructuring plan. Obligations incurred from January 30, 2026, forward will be paid in the ordinary course of business. Employee salaries will continue to be paid as normal throughout this process.
Path Forward
JSC “Amber Latvijas balzams” intention is to negotiate a restructuring plan with creditors (including authorities), agree on a sustainable business plan, and emerge from TAP as a stronger operation. The typical TAP process takes 2-6 months to develop and approve a restructuring plan, followed by a 2-year implementation period (extendable to 4 years with creditor consent).
Management is targeting completion of the plan development and approval phase by mid-2026, with emergence from TAP in late 2027. The company's underlying brands remain strong and competitive. The business is fundamentally viable. The challenges stem from external factors – geopolitical actions by the Russian Federation and the well-documented decline in the global spirits market. TAP provides the legal framework to address these challenges systematically while preserving operations and employment.
Impact on Amber Beverage Group
Amber Beverage Group, the parent company, is not affected by this filing. ABG sales and distribution operations worldwide continue normally.
Management Statement
Normunds Stanevics, Group CEO of Amber Beverage Group, stated: "This was a difficult but necessary decision to protect our business, our brands, and the jobs at Latvijas balzams. TAP provides us with the legal protection we need to negotiate with creditors and establish a sustainable path forward. We remain committed to our operations in Latvia and to our role as a significant contributor to the Latvian economy."
About Amber Latvijas balzams
JSC “Amber Latvijas balzams” is the leading producer of alcoholic Amber Beverage Groups in the Baltic States, manufacturing more than 100 different brands of Amber Beverage Groups. The leading shareholder of JSC “Amber Latvijas balzams” is Amber Beverage Group Holding S.à r.l., which owns 89.99% of the company's share capital. The company operates production facilities and warehouses in Latvia, employing 364 people.
Forward-Looking Statements
This announcement contains forward-looking statements regarding the company's intentions, expectations, and plans. These statements are subject to risks and uncertainties, and actual results may differ materially. The company undertakes no obligation to update forward-looking statements except as required by law.