The court has opened restructuring proceedings against one of the largest organic food producers in the Baltic States, „Auga Group“ , which is experiencing financial difficulties, the group announced on Monday. 

Kęstutis Juščius, chairman of the group's board of directors, says the court's decision will help the group to meet the interests of all stakeholders, restore long-term solvency and maintain its long-established operations and employees in the regions.

„We will pursue our objectives and continue the actions we have started to ensure the success of the restructuring process,“ K. Juščius said in a statement. 

The decision to open the restructuring case will become final if it is not appealed to the Court of Appeal.  

„The Company and its undertakings will be engaged in the activities of crop production, livestock farming, mushroom cultivation and the supply of products to end-users, both prior to the approval of the restructuring plan and after the approval of the restructuring plan," the announcement said. 

K. Juščius has said that the restructuring was initiated following financial challenges caused by inflation and rising production costs, volatile prices of organic raw produce.

He said the group will stop developing innovative agricultural technologies and engage in normal agricultural activities, as well as lay off staff.