Baltika will present reorganization plan to creditor’s for their approval
On March 27th, 2020 AS Baltika (hereafter „Baltika“) announced to the public that it presented reorganization application to Harju Country Court and court issued decree on March 26th, 2020 approving and initiating the reorganization.
In light of this, Baltika announces that restructuring advisor has, in collaboration with Baltika’s Management, compiled reorganization plan, which aims to overcome temporary payment difficulties and liquidity problems, that are caused by global COVID-19 crises and inability to meet obligations from exiting the production activities.
According to the reorganization plan major restructuring measures are finishing the successfully started strategic turnaround with it’s goal of cutting fixed costs, applying applicable COVID-19 measures, and engaging additional financing and restructuring creditor’s claims. Baltika plans to fulfill the reorganization plan within three years from it’s approval.
The measures used in the reorganization plan are compliant with legal and court practices. They are realistic and reasonable and will burden creditors only in the extent that is necessary for reorganization’s success. Reorganization is an alternative to bankruptcy and Baltika’s successful restructuring will enable Baltika itself, as well as it’s subsidiaries, to continue business activities and to preserve numerous jobs in Estonia, Latvia and Lithuania.
Approval of the reorganization plan assured creditor’s claims fulfillment in the best possible way, which is why reorganization advisor and Baltika’s Management are asking for approval of the reorganization plan. For the approval of the reorganization plan creditors will cast their votes. After creditors voting, court will make the final decision on the reorganization plan’s approval.
Attached is a summary of the reorganization plan.