Estonian E-Piim Tootmine insolvency administrators prepare to sell plants for €90 million

The insolvency administrators of Estonia's largest cheese and butter producer, „E-Piim Tootmine“, are preparing for a public auction to sell the company's factories for almost €90 million. According to the national press, both local and foreign companies have already expressed interest.

The sale of the factories in Paide, Peltsama and Yerva-Yana is planned despite the cooperative's management's statements about the possibility of restoring its operations, even though a court has declared the company permanently insolvent.

According to the insolvency administrators, the preparations for the sale of the „E-Piim“ plants have proved more complex than originally envisaged. Creditors had earlier decided to sell the company's assets as two separate units: the Paide and Peltsama plants together for a starting price of €80 million, and the Yerva-Jany plant for €8 million.

The true scale of the crisis involving „E-Piim“ is gradually becoming clear. While until now the public discourse has focused on the money dairy farmers have not received and on the future of the Paides plant, the total amount of claims in the bankruptcy proceedings has now become known. It amounts to almost €385 million, writes the publication „Maaelu“.

„E-Piim Tootmine“'s insolvency administrators, Olev Kuklase and Indrek Lepsoo, told „Maa Elu“ that the company has claims for €384,561,020.21. It is not yet known how much of these claims will ultimately be admitted, which should become clear in the autumn.

In the meantime, production is continuing at all plants during the insolvency proceedings. According to the administrators, both the operation of the plants and the payment for raw milk delivered after the declaration of bankruptcy have been secured.

The sale of the company's assets is currently under active preparation. There is already interest in acquiring the assets and we expect potential buyers to participate in the auction. Whether a purchase offer will be made will be determined at the auction," they noted.

Preparations for the sale of the property are nearing completion, they said, and an open auction is expected to be announced in the near future.

In addition to the main plants, assets outside the company's production complexes are being sold. Auctions for these assets are already underway, but no deals have been concluded yet.