"Court extends Auga Group's restructuring plan until mid-August

The Vilnius Regional Court has extended until 19 August the deadline for one of the largest organic food producers in the Baltic States, Auga Group, which is experiencing financial difficulties, to submit a restructuring plan to the court.

The company has been granted an extension because all creditors' claims have not yet been approved, the company said on the Vilnius Stock Exchange via „Nasdaq“. „Due to the situation, the company's creditors are currently unable to take decisions in the company's restructuring case“, – the company said.

„Auga Group“ drew up a plan at the end of June, which the company's shareholders were due to vote on 14 July.

According to the company, the courts have not yet approved the €48.7 million creditors' claims, which means that the company is not in a position to obtain the majority of creditors required by law.

BNS previously reported that „Auga Group“ has total creditor claims amounting to EUR 94 million. The disputed claims mainly relate to the company's obligations, such as sureties and guarantees for other companies in the group, which are also being restructured.

The restructuring is aimed at settling its creditors by 2029 and at improving its financial performance on a group-wide basis.

The restructuring proceedings were opened by the court on 6 January, with „Valnetas“ appointed as administrator.

Kęstutis Juščius, Chairman of the Group's Board of Directors, has said that the restructuring was initiated following financial challenges caused by inflation and rising production costs, volatile prices of organic raw materials.