As previously announced, on January 6, 2025, the Vilnius Regional Court has made a decision to open restructuring proceedings of AUGA group, AB, legal entity code 126264360 (hereinafter - the Company), by a court ruling that came into force on January 17, 2025. In the Company's restructuring proceedings, a court ruling dated April 22, 2025, confirming part of the creditors' claims, came into force on May 2, 2025. The disputed creditors' claims were separated into 22 individual cases currently being heard in the Vilnius Regional Court. The amount of the creditors' claims of AUGA group, AB approved by the currently effective court ruling is 41,2 m EUR, while the amount of the disputed claims is 53,6 m EUR.
While preparing the restructuring plan and planning the economic, organisational, and other measures intended to overcome financial difficulties, the Company aims to properly reflect the obligations of the Company and its controlled entities (hereinafter - the Group) and to ensure that, through effective coordination of the restructuring processes of both the Company and the entire Group, not only the long-standing operations of the Company and the Group's companies are preserved, but the creditors are also duly repaid.
Given the current situation, where a significant portion of the creditors' claims is being disputed in court, the Company has not had, and still does not have, an objective possibility to prepare a final restructuring plan and to initiate the procedures for its consideration and approval. This is because, without clarity on the final amount of creditors' claims, the scope of the measures in the restructuring plan also remains unclear. In the Company's view, considering and approving the restructuring plan while a large part of all creditors' claims is still under judicial review could lead to additional legal disputes, further complicating an already complex restructuring process. Due to the nature of the Group's activities, this process must also be coordinated with the restructuring progress of other companies within the Group. Based on these circumstances, the Company is seeking to have the deadline for submitting and approving the restructuring plan extended to the maximum period allowed under the Law on the Insolvency of Legal Entities - 6 months from the date the court ruling to open the restructuring case came into force, i.e., until July 17, 2025. At present, there is still no final court decision on whether this deadline will be extended or not.
As previously announced, restructuring proceedings have been or are being initiated not only for the Company but also for a number of other companies within the Group. Out of the 27 Group companies for which restructuring processes were initiated:
- In 11 Group companies, restructuring cases have been opened by final court rulings, and the next stages of restructuring are currently underway: preparation of restructuring plans, and preparations for their review and approval by creditors and shareholders;
- In 7 Group companies, applications for opening restructuring proceeding are still outstanding in court - there are no final court rulings on whether the restructuring cases will be initiated or not. These applications are being re-examined in first-instance courts following appellate court decisions that overturned previous first-instance court rulings to initiate or not initiate restructuring proceedings;
- In 9 Group companies, agreements were reached with key creditors, and therefore the restructuring procedures were terminated (the applications for initiating restructuring cases were withdrawn).
Despite all the challenges related to the restructuring processes, the Group continues to carry out daily operations in all of its business segments:
- Crop growing: this year, 34 thous hectares of winter and spring crops are being cultivated, with the total area decrease due to discontinued operations in the unprofitable Mažeikiai farm last year. Biomethane production capacity is on a gradual increase, with the organic crops having been treated with digestate (a by-product of the biogas production process) for the very first time;
· Animal husbandry: organic and conventional dairy farming is running as usual, with the constant number of milking cows amounting to 3 400 dairy cattle;
· Mushroom growing: this segment is operating at full capacity despite the operating company's status of under restructuring;
· Fast-moving consumer goods (FMCG): recorded sales of 1,5 m EUR in the first five months of 2025 - that is 42% higher compared to the same period last year. Following such a performance, the sustainable and organic dairy and grain product line "Mission No Cost to Nature" seems to be gradually gaining a place in consumers' daily shopping baskets, and consumers express their continued support the Company despite its financial challenges.
Contacts:
AUGA group, CEO
Elina Chodzkaite - Barauskiene
+370 5 233 5340
