On the initiative and by the decision of UAB AUDIFINA, legal entity code 125921757, the trustee of the bondholders (hereinafter – the Trustee), a meeting of the bondholders (hereinafter – the Bondholders) holding the issue of bonds, ISIN code LT0000407496 (hereinafter – the Bonds), of the company ŽŪK AgroBokštai, legal entity code 302485217 (hereinafter – the Issuer), indirectly controlled by AUGA group, AB, legal entity code 126264360 (hereinafter – the Company), was held on 9 December 2024 (hereinafter – the Meeting).
As the Company announced on 6 December 2024, the Issuer is a company of the Company’s Group in respect of which the court has issued a statement on the initiation of restructuring proceeding. In the proceedings for the commencement of the Issuer’s restructuring proceedings, the court as well as has imposed interim measures of protection, including prohibiting the Issuer from discharging its obligations, collecting debts and/or assets from the Issuer, selling and/or otherwise transferring the Issuer’s assets, and imposed other restrictions (hereinafter – the IMP).
At the Meeting, the authorised representatives of the Issuer informed the Trustee and Bondholders about the initiation of the Issuer’s restructuring proceeding and the IMP imposed by the court. They also presented their assessment of the impact of these measures on the adoption and implementation of the meeting's decisions. The Bondholders were presented with the Issuer's assessment that, given the validity of the IMP, the decisions on foreclosure of the company's mortgage and the appointment of a property administrator, as outlined in the meeting agenda, could not be implemented if adopted.
Information about the decisions adopted during the Meeting is available on the Trustee's website https://www.audifina.lt/en/services/consulting-services/trustee-services/#viesi-pranesimai
Although the decisions regarding the foreclosure of the company's mortgage and the appointment of a property administrator were adopted at the Meeting, as mentioned, the Trustee will not be able to implement these decisions due to the ongoing restructuring procedure of the Issuer and the validity of the interim measures.
Additionally, to ensure transparent cooperation with Bondholders, the Issuer also presented a proposal during the Meeting on how to settle with the Bondholders: namely, to redeem all Bonds no later than December 31, 2026. Until the final redemption date, partial interest payments would be made annually, using the Issuer's planned operational revenues for 2025-2026 and potential external financing. The final decisions on how settlements with Bondholders and other creditors will be made will be determined in the Issuer's restructuring plan. The Issuer will make every effort to fulfil its obligations to Bondholders in accordance with the approved restructuring plan. It is important to note that since the issuance of the Bonds, the Issuer has consistently and properly paid interest to investors on time.
The Bondholders listened to this proposal from the Issuer but did not vote on it, as this matter will be part of the restructuring plan. According to legislation, Bondholders, as creditors, will have the opportunity to vote on the plan at a later stage of the restructuring process.
Contacts:
CFO of AUGA group, AB
Kristupas Baranauskas
+370 5 233 5340
