No agreement between Auga Group and bondholders
After the shareholder and chairman of the board of directors of one of the largest organic food producers in the Baltic States, Kęstučius Juščius, announced on Monday that the group had managed to reach an agreement with the bondholders on the redemption of the bonds, the latter's lawyer denied the information.
„He (K. Juščius – BNS) said that an agreement had been reached, whereas there is no agreement. Wherever there is a convergence of positions – that there were negotiations, consultations with bondholders. It took place, yes, but those positions are still different and do not coincide," Grajauskas told BNS.
K. Juščius told the portal „Verslo žinios“ on Monday that the group had managed to reach an agreement with the holders of the EUR 20 million green bonds on their redemption by the end of 2026. He said the redemption would bring the company's debt and earnings before interest, tax, depreciation and amortisation (EBITDA) levels back in line and would be much better.
According to Mr Grajauskas, there is currently a disagreement on both the terms of the bond redemption and the maturity date, which remains unchanged – the bonds are to be redeemed on 17 December this year.„Today („Auga Group“ – BNS) announced that they have heard some principal agreements, so we don't really understand what they have heard there. There were discussions, but no decisions on substantive issues were reached," the lawyer said.
„Auga Group“ clarified on Tuesday via „Nasdaq“ Vilnius Stock Exchange that based on the agreements in principle heard during the consultations, the company has provided in the draft restructuring plan for the possibility to settle the bonds with the bondholders by December 31, 2026.
„Auga Group“ later on Tuesday told BNS that it had consulted with some bondholders and exchanged positions and expectations with them.
„Auga Group“ is consulting with a section of bond investors – most financial investors. During these meetings, positions and expectations were exchanged," – „Auga Group“ said in a comment to BNS.
BNS previously reported that „Auga Group“ is initiating a restructuring. The group plans to double its operating costs by 2027, sell some of its businesses and assets, and merge or close up to 60 companies.
The Group's four-year restructuring plan, drawn up last week, will be discussed by shareholders on 4 December.
„Auga Group“ issued a EUR 20 million green bond at 6% per annum in 2019 – this was the first such bond placement among listed private equity companies in the Baltics.
Similar articles
Video
