Court Ruling on Partial Approval of Creditors’ Claims in the Restructuring Proceedings of AUGA group, AB Has Taken Legal Effect
The ruling of the Vilnius Regional Court dated 22 April 2025 (hereinafter, the “Ruling”) approved the claims of creditors that were not disputed by the insolvency administrator in the restructuring proceeding of AUGA group, AB, legal entity code 126264360 (hereinafter, the “Company”). Furthermore, the court also separated the examination of disputed creditors’ claims into separate proceedings. The total amount of undisputed claims stands at approximately EUR 41 million, whereas the disputed claims amount to approximately EUR 53 million. The Ruling became effective on 2 May 2025.
As previously communicated, restructuring proceedings have been or are in the process of being initiated not only in respect of the Company, but also of certain in respect of other entities within the group to which the Company belongs (hereinafter, the “Group”). The Company and the Group entities operate in accordance with the principles of a circular economy, and their activities, financial flows and obligations are closely interrelated. The claims disputed by the insolvency administrator, primarily relate to obligations provided by the Company as collateral (e.g., issued sureties, guarantees, etc.) for other Group companies that are also subject to restructuring proceedings.
The purpose of the insolvency administrator’s objections to such claims is to prevent a scenario in which creditors assert the same claim twice, despite there being only one underlying debt obligation. The approval of identical claims in both the proceedings of the principal debtor and those of the collateral provider would result in a distortion of the actual debt level on a Group-wide basis. The aforementioned increase in debt would, in all fairness, create an undue burden on the restructuring processes of the Company and its Group entities and possibilities to settle with creditors.
The Company and the Group entities remain committed to cooperating with creditors, addressing the complexities associated with the approval of creditor claims and seeking a coordinated and mutually acceptable solution. The objective of such cooperation is to ensure the effective implementation of restructuring processes, the continuity of business operations and the fulfilment of obligations towards creditors.
Contacts:
CEO of AUGA group, AB
Elina Chodzkaitė-Barauskienė
+370 5 233 5340
