Amber Beverage Latvia files for insolvency
Amber Beverage Group (ABG) has filed for voluntary legal restructuring under Tiesiskās Aizsardzības Process (TAP) for its Latvian division to establish a sustainable financial structure following multiple setbacks.
The filing for the legal protection process was submitted to the Riga City Court on 30 January 2026.
The voluntary legal restructuring process is designed to protect the business while the company works with creditors to establish a sustainable financial structure. The company emphasised that the TAP filing is not a form of liquidation; rather, it is a tool for reorganisation.
ABG has stated that the filing applies only to its Latvian subsidiary, JSC, also known as Amber Latvijas Balzams, which will continue normal operations throughout the TAP process.
JSC, which produces more than 100 brands, plans to maintain production across its facilities and warehouses to ensure a steady supply for its customers.
The company stated that the filing would not impact its 364 employees, including salaries.
Additionally, Amber Beverage Group’s sales and distribution companies worldwide are not affected by the filing and will continue their normal operations.
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.”
Multiple setbacks
The decision to file for TAP follows a series of external challenges that have impacted the company’s cash flow, including a sophisticated, large-scale cyberattack that targeted its local and international operations, with ongoing remediation efforts.
Ongoing legal battles with the Russian Federation over the group’s public support for Ukraine and Europe have substantially impacted operations, excluding the company from multiple international markets.
Furthermore, changes in the international spirits market and declining volumes in key markets have impacted the company’s revenue.
According to ABG, the combination of external pressures led to delays in excise tax payments.
Following lengthy negotiations with the State Revenue Service (VID) regarding overdue tax obligations, VID froze the company’s bank accounts. This action rendered it impossible for the company to continue operations without seeking legal protection.
The TAP framework provides a structured approach to address all obligations, including tax liabilities, through a plan that both creditors and the court must approve.
The typical TAP process requires two to six months to develop and approve a restructuring plan, followed by a two-year implementation period, which can be extended to four years with creditor consent.
The company’s management aims to complete the plan development and approval phase by mid-2026, with a transition from TAP expected in late 2027.
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