Lindorff business transfers in Latvia and Lithuania have been completed

As the result of combination of Intrum Justitia and Lindorff, which was followed by significant changes in the group companies determined by the European Comission, Lindorff Group has undergone restructuring also in Baltics where ambitious business transfers in Latvia and Lithuania were completed on 30 September 2017. The business carried out by Lindorff Oy Latvian branch has been fully transferred to the newly established company, i.e., SIA Lindorff Latvia. During the process, all of the company's commercial activities have been transferred, therefore from now on, the counterparty of the customers will no longer be Lindorff Oy Latvian branch but SIA Lindorff Latvia. Concurrently, the same process took place in Lithuania where the business of Lindorff Oy Lithuanian branch (Lindorff Oy filialas) was transferred to the newly established company, i.e., UAB “Lindorff Lietuva” on 30 September 2017.

Ilva Valeika, Member of the Board of SIA “Lindorff Latvia” says: “By completing the business transfers, we have complied with requirements laid down by the European Commission; at the same time, it has also been a great opportunity to evaluate our activities and make them even more efficient within the scope of the restructuring. Now we are going to create the world's leading credit management services company and will offer even better service and wider range of products for our clients in 23 markets across Europe.”

“We aim to deliver top-notch services to our customers, therefore the business transfers have occurred in a manner that did not affect our customers and partners. The only aspect that our customers need to be aware of is the change of the legal form, i.e., services will now be provided by the limited liability company instead of the branch,” comments Kristaps Tomsons SIA “Lindorff Latvia” Director of Business Development and PMO in Baltic States.

Lindorff carried out the business transfers in cooperation with PwC, with the latter carrying out project planning and implementation within the scope of the restructuring, providing legal assistance, assessing the impact of tax implications and consequences, as well as providing tax advice during the process. Both in Latvia and Lithuania, the project was led by PwC Latvia office jointly with law office PwC Legal ensuring a uniform approach and carrying out the process concurrently in two countries consistently with the requirements of the national laws regulating business transfers.

Maija Kestere, attorney at law at PwC Legal: “To transfer a going concern, risks and processes need to be managed appropriately since the transfer must not affect either the relevant staff or the existing business processes. Thanks to the excellent cooperation of all the parties involved, it was possible to ensure an accurate proceeding and successful completion of the process”.

According to Irēna Arbidāne, manager at PwC Tax department, in projects like this, it is key to analyse both tax and legal consequences before undertaking the carrying out of the work to prevent unforeseen consequences or obstacles from arising during the course of the project. “It is also important to ensure the monitoring of the implementation of the project according to the plan as business transfers require a great deal of administrative work on the part of external consultants as well as on the part of the company's own employees." 

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