Latvian Amber Latvijas Balzams Majority Shareholder Approved for Legal Restructuring

Riga City Court has approved the start of a legal protection process for JSC “Amber Latvijas balzams,” Latvia’s largest spirits producer, allowing the company to begin restructuring its financial obligations under court supervision. The decision, announced on April 27, 2026, follows the company’s voluntary filing for the Tiesiskās Aizsardzības Process (TAP) on January 30, 2026, a legal mechanism designed to shield viable businesses from creditor actions while they reorganize debts.

Court approval marks next phase in restructuring

The court’s ruling permits “Amber Latvijas balzams” to proceed with its restructuring plan without immediate risk of liquidation. Under Latvian law, the TAP process grants companies a moratorium on debt enforcement, providing time to negotiate with creditors and stabilize operations. The company, majority-owned by Luxembourg-based Amber Beverage Group Holding S.à r.l., will continue producing and distributing its portfolio of spirits, including Riga Black Balsam, during the process.

In a statement released alongside the court decision, the company emphasized that the legal protection process is not a liquidation procedure. The TAP process is designed to allow viable businesses breathing space to restructure their debts while continuing operations under court supervision, the company said in its January 30 filing to the Nasdaq Baltic stock exchange. The filing clarified that the process covers only the Latvian production facility and warehouse, leaving Amber Beverage Group’s international sales and distribution operations unaffected.

Cyberattack and geopolitical pressures cited as key challenges

“Amber Latvijas balzams” and its parent company have faced significant external pressures in recent years. In its January filing, Amber Beverage Group attributed the company’s financial strain to a combination of factors, including a large-scale cyberattack in September 2024 and ongoing legal disputes with the Russian Federation. The group stated that Russian authorities designated its associated entities as “extremist” following its public support for Ukraine and European peace initiatives, leading to operational disruptions and market access restrictions.

Following Amber Beverage Group’s public support for Ukraine and European peace, Russian authorities designated its associated entities as ‘extremist.’ Shortly afterwards, the group was hit by a sophisticated large-scale cyber attack, which targeted its local and international operations. 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.

Amber Beverage Group filing, January 30, 2026

The cyberattack, described as “sophisticated” in the company’s filing, disrupted production and supply chain operations, further straining cash flow. Amber Beverage Group also highlighted broader industry challenges, noting that major spirits producers worldwide have reported declining volumes over the past year, particularly in key export markets. Industry analysts have documented changing consumer preferences, economic pressures on discretionary spending, and inventory corrections throughout distribution channels, the group added in its statement.

Restructuring follows similar moves by Stoli Group

The decision to seek legal protection in Latvia follows recent restructuring efforts by Stoli Group, another spirits company majority-owned by Russian businessman Yuri Shefler, who also holds a significant stake in Amber Beverage Group. On January 16, 2026, Stoli Group announced the liquidation of two U.S. Subsidiaries—Stoli Group USA and Kentucky Owl Bourbon—after 14 months under Chapter 11 bankruptcy protection. The company cited similar challenges, including a cyberattack and the confiscation of its Russian distillery by authorities following its condemnation of the war in Ukraine.

Normunds Staņēvičs, CEO of Amber Beverage Group, described the TAP filing as a “difficult but necessary” step. The legal protection process gives us the legal safeguards we need to reach agreements with creditors and build a sustainable path forward, Staņēvičs said in the January 30 filing. The company has not disclosed the total value of its outstanding debts or the number of creditors involved in the restructuring negotiations.

Market and operational outlook

Despite the financial challenges, “Amber Latvijas balzams” has assured stakeholders that its day-to-day operations will continue uninterrupted. The company’s portfolio includes several well-known brands, such as Riga Black Balsam, Kimmel, and Latvijas Balzams vodka, which remain available in domestic and international markets where permitted. The restructuring process is expected to focus on renegotiating payment terms with creditors, optimizing supply chains, and exploring new revenue streams to offset lost export markets.

Analysts note that the success of the restructuring will depend on the company’s ability to stabilize cash flow and regain access to key markets. The TAP process typically lasts between six months and two years, during which the company must present a viable recovery plan to the court. If approved, the plan would bind all creditors, even those who oppose it, under Latvian law.

The court’s approval of the TAP process marks a critical juncture for “Amber Latvijas balzams,” which has been a cornerstone of Latvia’s spirits industry for over a century. While the company’s long-term prospects remain uncertain, the legal protection framework provides a structured path to address its financial challenges without immediate liquidation. Stakeholders, including employees, creditors, and distributors, will be closely monitoring the company’s progress as it navigates the restructuring process.