"Auga Group's creditors' claims amount to EUR 94 million

The total claims of the creditors of „Auga Group“, one of the largest organic food producers in the Baltic States, which is undergoing restructuring and is experiencing financial difficulties, amount to EUR 94 million.

The undisputed claims amount to around €41 million and the disputed claims to around €53 million, the Vilnius Regional Court confirmed in a ruling that became final on 2 May. The court decided to separate the contested claims into separate cases. 

„Having familiarised itself with the insolvency administrator's request for uncontested claims (...), the court recognises the administrator's request as well-founded (...)“,“ BNS was informed by the court's spokeswoman, Lina Nemeikaitė. 

According to „Auga Group“, the disputed claims mainly relate to the company's obligations, such as sureties, guarantees for other group companies, which are also undergoing restructuring.

„In this case, the insolvency administrator's challenge to such creditors' claims is aimed at avoiding a situation where creditors make the same claim twice, when the actual amount of the debt is twice as low. In such a case, the confirmation of the same claim twice, i.e. by both the main debtor and the secured debtor, would not correctly reflect the real amount of the debt at the level of the group's companies," the company said.

„Such an inflation of the actual amount of debt at group level would unduly complicate the restructuring processes and the ability of the company and its group companies to pay creditors“, – said „Auga Group“.

„Auga Group“ says it is ready to cooperate with creditors, settle and preserve the Group's operations.

The court opened the restructuring case on 6 January and appointed „Valnetas“ 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, as well as volatile prices for organic raw materials.