Initiation of Restructuring Processes for a part of Companies controlled by AUGA group, AB
07 December 2024 - 3:53AM
UK Regulatory
Initiation of Restructuring Processes for a part of Companies
controlled by AUGA group, AB
As announced on 11 November, 2024, AUGA group,
AB (hereinafter - the Company) by the decision of the Board
initiated the restructuring process of the Company, which was
approved by the Extraordinary Meeting of Shareholders of the
Company on 4 December, 2024.
Additionally, the Board of the Company
recommended to the managers of the group companies controlled by
the Company to assess the need to initiate restructuring processes
for individual companies of the Company’s group.
The group companies conducted an analysis on the
impact of the initiation of the restructuring of the Company on the
business continuity and financial situation for a particular
company in question. The companies impacted by such a
process-initiated negotiations with the creditors on the revision
of the terms for the fulfillment of obligations in a contractual
manner.
"However, it is clear that the initiation of the
Company's restructuring process primarily has a negative impact on
those companies of the group whose activities are financed by bank
financing. After a public disclosure of information about the
initiation of the restructuring of the AUGA group, AB, a part of
banks financing the activities of the group companies made
decisions not to extend or renew the terms of the repayment of
working capital loans, which in previous periods were usually
extended. The restructuring processes of subsidiary companies will
provide us with the time needed to fulfill our obligations to all
creditors properly and maintain the operations in strategic
regional companies that create value-added to the national
economy," says Kęstutis Juščius, Chair of the Board of the AUGA
group, AB.
In connection to this, a part of the group
companies was forced to choose the path of restructuring in order
to protect the interests of employees, creditors, shareholders and
other interested persons as well as to ensure the continuity of the
business. The courts have accepted the applications on the
initiation of restructuring processes in the following companies of
the Company's group: ŽŪB AUGA Skėmiai, ŽŪB AUGA Smilgiai, ŽŪB AUGA
Vėriškės, ŽŪB AUGA Dumšiškės, UAB AUGA Grūduva,
ŽŪB AUGA Jurbarkai, ŽŪB AUGA Lankesa, UAB Gotlybiškių pienas, ŽŪB
AUGA Gustoniai, ŽŪB AUGA Mantviliškis, ŽŪB AUGA Spindulys, ŽŪB AUGA
Žadžiūnai, ŽŪB AUGA Želsvelė, UAB AUGA Ramučiai, ŽŪB AUGA Kairėnai,
UAB Buktos pienas, UAB Grain Lt, UAB Pamargės pienas, UAB
Vaitiekūnų pienas, ŽŪK Agrobokštai, UAB Baltic Champs, UAB
Agrotechnikos centras, UAB Panemunės pienas, and UAB Gudelių
pienas.
Contacts:
CEO of AUGA group, AB
Elina Chodzkaitė - Barauskienė
+370 5 233 5340
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