Regarding the Redemption of UAB “AWG investment 1” Private Bonds
As announced by AUGA group, AB, legal entity code 126264360 undergoing restructuring, legal entity code 126264360 (hereinafter – the Company) in its material event notice dated 20 January 2025, its wholly controlled subsidiary UAB ‚ AWG investment 1’ (hereinafter – the Issuer) has issued private bonds, ISIN LT0000409104, with a total nominal value of EUR 4,984,000 (hereinafter – the Bonds). The Issuer undertook to redeem the Bonds and pay the accrued but unpaid interest by 8 November 2025. Since the redemption date falls on a non-business day, the Bonds had to be redeemed no later than 10 November 2025. To secure the fulfilment of the obligations under these Bonds, 100% of the shares of UAB ‚ Baltic Champs’ (legal entity code 302942064), directly controlled by the Company, have been pledged.
As previously announced, the Issuer informed the Company that on 10 November 2025 it paid the accrued interest but did not redeem the Bonds.
On 10 November 2025, the Company reported the situation and noted that Clause 25 of the general Bond Terms and Conditions stipulates that an event of default is deemed to have occurred if the Issuer fails to pay any principal or interest amount on its due date and such failure continues for 20 business days. The Issuer has a 20-business-day cure period to remedy this breach by redeeming the Bonds (hereinafter – the Remediation Period).
The Issuer informed the Company that it did not redeem the Bonds during the Remediation Period and that an event of default has occurred.
On 4 December 2025, the Company announced that it had signed a binding preliminary share sale agreement for UAB ‚ Baltic Champs’ and indicated that, taking into account the existing pledges and Company’s restructuring plan, the majority of the funds received from the sale of UAB ‘Baltic Champs’ shares will be used to proper redeem the private bonds issued by the Issuer and for the payment of accrued and unpaid interest .
Accordingly, the Issuer informed the Company that it will shortly contact the bondholders’ trustee, UAB ‚AUDIFINA’, requesting for a bondholders’ meeting to be convened, where draft resolutions regarding the actions to be taken for the redemption of the Bonds will be presented, including the Bondholders’ meeting approval and consent to sell the pledged asset – 100% of UAB ‚Baltic Champs’ shares.
Contacts:
CFO of AUGA group, AB
Kristupas Baranauskas
