Estonia's largest cheese producer E-Piim Tootmine goes bankrupt

A court in Estonia has granted the bankruptcy petition of the country's largest cheese producer, „E-Piim Tootmine“, and appointed two temporary administrators, reports „Verslo žinios“.

„E-Piim Paide“, the manager of the cheese factory „E-Piim Tootmine“, filed for bankruptcy on 12 February. The insolvency administrators had until 23 March. The insolvency administrators must submit a report and an opinion on the reasons for the company's insolvency to the Tartu District Court on March 24.

According to reports, the plant's CEO, Anti Orava, told business news portal „Aripaev“ that the company's biggest creditors are banks – they have liabilities of more than €100 million. These are mainly long-term loans to finance investments, he said.

Earlier, it was announced that the company has a debt of €29 million related to its obligations to milk producers.

According to the portal, the publication „Eesti Ekspress“ reports that the company's liabilities amount to EUR 210 million.

The company's loans worth almost €70 million have been guaranteed by the Swedish, Dutch and Estonian national export credit agencies. The largest financiers of „E-Piim“ are the Dutch bank ING, the European Investment Bank and LHV.

According to Mr Orava, all the company's assets are pledged to banks. As major creditors, the banks are also leading the search for potential investors.

„E-Piim Tootmine“ is the largest cheese producer in Estonia, with the capacity to process up to 1,000 tonnes of raw milk per day. More than 90% of its production is exported.

„Verslo žinios“ reports that the company's revenue in 2024 was EUR 152.7 million.