Information on the status of the restructuring processes for some subsidiaries of AUGA group, AB, which is undergoing restructuring

As  on 6 December 2024, restructuring procedures have been initiated for some of the subsidiaries of AUGA group, AB, aiming to protect the interests of employees, creditors, shareholders, and other stakeholders, as well as to ensure business continuity and restore long-term solvency. 

Restructuring proceedings have now been initiated and the related court rulings have taken effect for a total of 10 companies, including AUGA group, AB and its controlled entities AUGA Jurbarkai, ŽŪB; AUGA Smilgiai, ŽŪB; Grain LT, UAB; AUGA Dumšiškės, ŽŪB; AUGA Grūduva, UAB; Baltic Champs, UAB; AUGA Mantviliškis, ŽŪB; AUGA Nausodė, ŽŪB; and Agrotechnikos centras, UAB. 

“We welcome these court rulings, as these companies play a crucial role in ensuring the continuity of the entire group's operations and significantly contribute to the country's GDP. We began working diligently to optimize the performance of the companies that are in restructuring even before the proceedings were initiated. Still, given the unfavourable agricultural market conditions across Europe in recent years and the seasonality of the business, we probably won’t see the first positive results for the group until 2025,” says Kęstutis Juščius, Chair of the Board of AUGA group, AB.  

“Now that the court rulings have come into effect, we will make every effort to secure creditor approval for the restructuring plans, aiming to reconcile the companies' solvency with the fulfilment of their long-term obligations,” he says.  

It is important to note that 9 companies – Panemunės pienas, UAB; Gudelių pienas, UAB; AUGA Vėriškės, ŽŪB; Buktos pienas, UAB; Pamargės pienas, UAB; Vaitiekūnų pienas, UAB; Gotlybiškių pienas, UAB; Biržulių pienas, UAB; and AUGA Kairėnai, ŽŪB – of their own volition withdrew their petitions to initiate restructuring proceedings from the courts, as interim agreements with key creditors were reached. 

Another 8 companies still await final court rulings on the approval of their restructuring processes. 

Contacts:  

CEO of AUGA group, AB, which is undergoing restructuring 

Elina Chodzkaitė - Barauskienė