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
