RSE to consider the restoring of trading with "Kaija" shares after the court verdict

08.04.2004 RIG

Riga Stock Exchange will consider whether to restore the trading with JSC “Kaija” shares only after receiving the court verdict on the company insolvency. In case “Kaija” will be ruled insolvent by the court, the RSE Management Board may, pursuant to Item 11.1.2 of its Listing Rules, resolve on delisting shares due to the insolvency of an issuer.

On April 5, 2004 “Kaija” advised the RSE regarding filing for insolvency. The trading with “Kaija” shares has been suspended since March 16 due to repeated violations of disclosure rules on behalf of the company. Since the company still remains listed, disclosure rules remain binding. The information “Kaija” still owes the RSE:

• a complete non-audited Annual Report for 2003 (balance sheet, profit/loss statement, change in equity statement and notes) – up to now, the RSE has only the balance sheet and profit/loss statement
• management board report on draft budget and company development prospects for 2004; management outlook as to company capability to meet the liabilities; planned operations;
• company restructuring plan and documents supporting restructuring decisions, such as excerpts from the minutes of shareholders’ meetings, of Management Board and Supervisory Board meetings;
• list and amounts payable to credit institutions, suppliers and other creditors.
  

Also, by April 30, 2004, the company has to provide to the RSE audited Annual Report for 2003; auditor’s opinion on the above management report and on the capability of the company to fulfil the tasks defined in the report, and to demonstrate the expected financial performance.