An auction to sell the assets of the bankrupt Estonian company ‘E-Piim Tootmine’ will begin on Friday
On Friday, the auction to sell the assets of „E-Piim Tootmine“, Estonia’s largest cheese and butter producer, which has gone into administration, will begin.
The assets will be sold in two main lots: one comprising the cheese factories in Paide and Peltsamaa, and the second comprising the assets in Jerva-Jani.
The sale will take the form of an open auction. In addition to Estonian investors, companies from Finland, the Netherlands, Lithuania and Germany have expressed an interest in the purchase.
The insolvency administrator, Indrek Leppsoo (Indrek Lepsas), reported that preparations for the sale process took longer than usual because “E-Piim Tootmine” is being sold as a going concern and in two parts.
“E-Piim Tootmine” was declared bankrupt on 11 March this year. Creditors decided to continue the company’s commercial operations during the bankruptcy period, as this best ensures the preservation of assets. In accordance with this decision, „E-Piim Tootmine“’s production units operated at up to 30 per cent capacity, whilst the Peltsama packaging plant operated at full capacity, as serving retail market customers was considered a priority. During the bankruptcy period, the company made timely payments to milk producers and other partners.
The new “E-Piim Tootmine” cheese factory in Paide is one of the most modern in Europe. It can process up to 1,200 tonnes of raw milk daily. Last year, the company exported more than 90 per cent of its production. The company currently employs 180 people.
It was previously reported that the insolvency administrators of “E-Piim Tootmine” intend to sell the company’s factories for nearly 90 million euros.
