The Kaunas Regional Court did not approve the restructuring plan of AB SNAIGE

On 4 April. the Kaunas Regional Court did not approve the restructuring plan of AB SNAIGE. Although it was approved by a majority of both the company's shareholders and the majority of the company's non-mortgage creditors, the mortgage creditor UAB Easy Debt Service voted against this plan.

In the opinion of Mindaugas Sologubas, manging director of AB SNAIGE, the restructuring plan is an opportunity for the company to solve temporary financial difficulties, optimize and restructure the company's activities so that the company can meet its obligations to all creditors as soon as possible. "The restructuring plan was in the interests of all creditors." - says M. Sologubas. "The failure to approve this plan means that in reality, non-mortgage creditors can hardly count on the recovery of their debt, the beneficiary will only be the mortgage creditor."

According to Mindaugas Sologubas, "AB Snaige is now a functioning, viable company that pays taxes to state and salaries to its employees on time, makes current payments to its creditors, and exports its products to almost 30 European countries. "If the restructuring plan will not be approved, the legendary Lithuanian company, which is counting for sixty years this year, will cease to exist," said M. Sologubas.  "-350 employees would be left without work, whose total salary fund in 2022 amounted to EUR 5,615,385.09, and the total amount of contributions charged to SODRA'i in 2022 amounted to EUR 1,393,718.33. Not only the company's creditors, but also the company's suppliers (about 100 companies) and the company's customers would be affected.

AB SNAIGE, according to Mindaugas Sologubas the Director General, will consider the possibility of appealing against this court decision in accordance with the procedure provided for by legal acts.

Managing Director
Mindaugas Sologubas
Phone +370 315 56206