RIGA, May 27 (RAPSI) - The ailing Latvian smelter Liepajas Metalurgs has turned to a Liepaja court for legal protection, the company reported in a statement on Monday.

The court is obliged by law to take a decision within a day upon receiving such a request.

Liepajas Metalurgs reported 10.1 million Lats (over $20 million) in losses in the first quarter of 2013, compared with a profit of 521,688 Lats ($1.4 million) in January-March 2012. Its consolidated net sales amounted to 78.3 million Lats ($156 million).

Liepajas Metalurgs shareholders were obliged to sell the company to its creditors for 1 Lat or to invest 10 million Lats ($20 million) each in the company by May 31.

Liepajas Metalurgs, the largest smelter in the Baltic region, is tottering on the brink of bankruptcy due to a crisis on the steel market. In mid-May, the Latvian government set up a working group to find a way to help the plant.

The company's management started dismissing workers in April and approved a plan to cut operating expenses by 3.7 million Lats ($7.4 million), administrative spending by 0.5 million Lats ($1 million), and sponsorship expenses by 0.5 million Lats ($1 million).