Urbo Bank lends EUR 3.9 million to Rietavas Veterinary Sanitation
Urbo Bank lends EUR 3.9 million to „Rietavas veterinarinė sanitarija“, a private Lithuanian company processing organic animal by-products.
The bank said on Wednesday that EUR 2.25 million of the loan was for working capital and EUR 1.65 million for equipment renewal, for which the company has already purchased a new continuous boiler and a two-stage chemical tower.
„The acquisition of new equipment and the modernisation of the production line for the processing of Category 3 animal by-products will allow us to significantly increase the processing efficiency, further improve the quality of the products produced, and significantly reduce the spread of unpleasant odours in the process, The company's plant „Biovast Rietavas“, which collects and destroys or recycles all categories of animal by-products, produces about 10,000 tonnes of protein additives and about 6,000 tonnes of fats per year. About 90% of the company's production is exported. BNS previously reported that the company was filed for bankruptcy in 2020 and in 2021 some of its creditors tried to restructure the company, but the court did not grant the request and the company was declared in liquidation, but in October last year the Klaipėda District Court closed the bankruptcy case and allowed the company to resume its operations after an amicable agreement with its creditors on the payment of its debts. The company's report submitted to the Registry Centre shows that it made a net profit of €9.2 million in 2023 (€5.2 million loss in 2022). In May last year, the Competition Council cleared the indirect acquisition of Italian animal by-products collection company SAPI, together with Lithuanian companies „Imlitex Holdings“ and „Duetra“. Its direct shareholder is the company „Cross financing company“ (100 % of the shares) and its beneficiaries are Rimantas Smolskis (37 %), Vygandas Balandis and Renatas Augustinas (14,16 % each).
