Skip to main content

Panevėžys Regional Court Approves the Restructuring of Utenos Trikotažas

Panevėžys Regional Court has approved the restructuring of SBA Group company Utenos Trikotažas, which aims to shift toward profitability and ensure sustainable continuity. The court has also approved the company’s four-year restructuring plan, which outlines the necessary measures and funding sources for its transformation.

“We have been anticipating this court decision, as we have already initiated important processes and negotiations that are crucial for the company’s successful transformation. The restructuring will give us time to reorganize our business model and ensure the company’s solvency as well as the long-term fulfillment of its obligations,” says Dovilė Tamoševičienė, Chair of the Management Board of Utenos Trikotažas.

The restructuring plan approved by the Court focuses on further efficiency improvements in the operations of Utena Trikotažas by reducing costs and eliminating loss-making activities while maintaining as much of the company’s viable operations as possible. Due to declining demand, contract manufacturing volumes have dropped, making certain processes inefficient and costly. The restructuring plan therefore foresees increasing the use of subcontracting services. The aim is to adjust the company so that, even with lower sales, it can restore profitability and meet its obligations to employees, creditors, and partners.

Regardless of the outcome with contract manufacturing, the restructuring plan envisions continuing the production of the company’s own brands, which remain profitable. The sales of the Utenos brand products in Lithuania are relatively stable and contribute approximately 12% of the company’s total revenue.

The restructuring plan also offers the possibility to realise various assets: real estate, movable property, and securities. Proceeds from these sales will primarily be used to meet creditor obligations. One of the main assets to be sold is the large Utenos Trikotažas manufacturing complex and administrative facilities.

The approved restructuring plan also includes the disposal of part of the equipment as well as shares of the subsidiary companies. Proceeds will first be used to cover obligations to employees and non-affiliated creditors, with the remainder going to the main shareholder, SBA Group.

To ensure the continuity of operations, SBA Group, the main shareholder of Utenos Trikotažas, made a financial injection to the company in a difficult financial situation this year and granted a liquidity loan of EUR 1,7 million, which has been used to pay employee wages, settle obligations to creditors, and fund other essential operational activities.

Additional information is provided by
Eglė Rakauskaitė, representative of AB Utenos Trikotažas, 
egle.rakauskaite@ut.lt, tel. +370 619 66107

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.