Latvian Construction Firm BMGS Declares Insolvency

One of Latvia’s largest construction companies, AS BMGS, has initiated insolvency proceedings, effective February 25, 2026. The move follows previous financial difficulties and unsuccessful attempts at legal protection. Baltic Business News first reported the development.

Timeline of Financial Struggles

BMGS faced increasing financial pressure in early 2026. On February 2, 2026, the State Revenue Service (VID) imposed restrictions on the company, preventing it from reducing its share capital and registering or amending commercial pledges. By February 10, 2026, BMGS’s debt to the VID amounted to €1,509,037.

Prior to the insolvency proceedings, BMGS sought legal protection, with proceedings initiated on February 13, 2025. However, the Riga City Court rejected this application on December 5, 2025, and subsequent attempts to appeal the decision were denied on January 29, 2026.

Financial Performance and Ownership

Despite recent difficulties, BMGS demonstrated growth in 2023, with a turnover of €52.151 million, a 48.4% increase compared to 2022. The company’s profit also quadrupled, reaching €455,635. Financial data for 2024 has not yet been released.

The company’s share capital is €3,239,600. The largest shareholders are SIA “Termināls,” owned by Elena Pare (67.99%), Tatiana Lileeva (9.3%), Vadim Para (9.18%), and Vladimir Chudnivets (8.35%). From July 11 to October 10, 2024, German company “Skyflower Real Estate” held a 34.47% stake in BMGS. Svetlana Afanasyeva, the long-time chairwoman, departed her position during Skyflower Real Estate’s ownership period.

Insolvency Administrator Appointed

Marita Kataya-Paegle has been appointed as the insolvency administrator, responsible for managing the proceedings. Kataya-Paegle is an experienced lawyer specializing in bankruptcy and legal protection processes, with over 15 years of experience in insolvency proceedings. CersJurkāns

Company Activities

BMGS specializes in hydrotechnical construction, bridge construction, and pile foundation creation. The company also produces concrete, reinforced concrete, and metal structures, provides geotechnical services, and rents construction machinery.