Comment on an article published in Ärileht in connection with the sale of the assets of AS Baltika subsidiaries

Unfortunately, an article has been published in Ärileht which contains false allegations and which may inappropriately affect the reorganization proceedings of AS Baltika and is an advertisement for an auction conducted in the course of the lien conducted by Kawe Invest OÜ. The auction reflected in the article do not concern AS Baltika or the ongoing reorganization proceedings. It is not an asset of AS Baltika. Such a false claim is misleading.

The only half-truth in the article is, in essence, that AS Baltika's subsidiary OÜ Baltman has a rental debt and Kawe exercised the landlord's right of lien. However, this indebtedness arose during the COVID-19 pandemic and the state of emergency, when all companies, especially those involved in retail, were faced with difficult choices. To alleviate the situation, Baltman asked Kawe to find the solutions for the unpaid invoices, but Kawe refused any of the solutions offered by Baltman. As a result, Kawe has decided to auction Baltman products with a starting price of zero euros and an actual retail price of 550,000 euros.

The reorganization procedure covers only AS Baltika and does not involve other companies of the AS Baltika Group.

Flavio Perini

Member of Management Board