The construction company AS 'BMGS' has been officially declared bankrupt following proceedings initiated by the Riga City Court on February 25. The appointment of Marita Kataja-Paegle as the bankruptcy administrator was affirmed as part of the court's decision. This was a significant move, as the company had reportedly significant debts, including over 1.5 million euros owed in taxes. Additionally, the State Revenue Service (VID) previously imposed certain restrictions on the company, making it challenging for them to operate effectively in the market.

Earlier in February, before the bankruptcy filing, the State Revenue Service had imposed measures to prevent 'BMGS' from reducing its equity and registering any commercial pledges, which indicated the company's precarious financial situation. Furthermore, the company was involved in long-extending legal processes related to the modernization of railway platforms. On December 5, 2025, the court rejected the protective process initiated for 'BMGS', further spotlighting the challenges the firm faced in recovery and sustaining its projects.

This situation highlights the ongoing financial challenges within the construction sector in Latvia, particularly regarding compliance with tax obligations and project management. The case of 'BMGS' will likely influence market confidence and set precedents for other companies facing similar financial issues in the region, drawing attention to the need for effective financial management and regulatory compliance to navigate economic downturns.