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Ettevõte AS BALTIKA

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  • Keel 'English'. Pealkiri oli muutunud.
  • Keel 'Eesti'. Pealkiri oli muutunud.
Eelmine versioon Kohus algatas Aktsiaseltsi BALTIKA saneerimismenetluse
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Kategooria Muud korporatiivtoimingud
Avaldamise aeg 18 mai 2020 11:45:46 +0300
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Pealkiri Correction: Court initiated the reorganisation proceedings of AS BALTIKA
Tekst
?With this correction the Company changes the Stock Exchange Announcement
published on March 27, 2020. Stock Exchange Announcement text: " The court has
set a date to present the reorganisation plan to the court for approval by June
1, 2020." will be replaced as following "The court has set a date to present the
reorganisation plan to the court for approval by May 25, 2020. "

AS  Baltika's  comment  on  the  change:  Two  dates are important for Baltika's
reorganization   plan   -  the  deadline  for  creditors  to  vote  set  by  the
reorganization  adviser is 20 May 2020 and the  deadline for submitting the plan
to  the court  is 25 May  2020. All documents  and correspondence prescribed for
creditors  by the law  have been based  on these dates,  i.e creditors have been
provided with the correct information.

The date of June 1, 2020 was stated in the company's stock exchange announcement
of  March  27, 2020 and  was  based  on  preliminary  information.  Later,  this
information  was clarified and  further official communication  to creditors was
based  on the  specified dates.  No creditor  has approached  to AS Baltika with
concerns that they are confused about the dates.


Aktsiaselts  BALTIKA (hereinafter  ?Baltika") informs  that Baltika submitted an
application  for the commencement of  reorganisation proceedings to Harju County
Court  on March  25, 2020 and on  March 26, 2020 the  court decided  to initiate
reorganisation proceedings.

As  stated in the  Baltika`s stock exchange  announcement on March 19, 2020, the
coronavirus  COVID-19 is having a  significant negative impact  on the financial
results  and liquidity of Baltika Group. COVID-19 has had the greatest impact so
far  on the activities of Baltika Group in Lithuania, where all stores have been
closed  since March  16 due to  orders given  by the  Lithuanian government. The
Estonian government has ordered all shopping malls in Estonia to be closed as at
March  27. Latvian stores  face restrictions  limiting opening  hours during the
weekdays and are closed on weekends. In addition, non-recurring expenses related
to  the restructuring (mainly regarding the  cessation of production in Estonia)
of  Baltika Group have also  had a negative impact  on the financial results and
liquidity of Baltika Group. As a result of these circumstances, Baltika Group is
having  solvency  problems,  which  according  to  Baltika are temporary by them
nature.

In  order to overcome the above  mentioned difficulties, Baltika has applied for
the  commencement of reorganisation proceedings. Baltika  is in the opinion that
in  the  current  situation  reorganisation  of  the  company is the best way to
protect  the  rights  and  interests  of  the  shareholders,  the employees, the
creditors  and the partners of Baltika. The company believes that as a result of
the  reorganisation  proceedings  and  the  measures taken in these proceedings,
Baltika  will  be  able  to  overcome  its economic difficulties and restore its
liquidity,  improve profitability and ensure its sustainable management. This is
also  supported by the restructuring and efforts to improve business model which
have  already  been  made  by  Baltika  Group,  such  as cessation of production
operations  in Estonia and thereby reducing  production costs, and various other
measures to reduce fixed costs.

If  reorganisation  of  Baltika  is  successfully  completed  and  the company`s
financial  difficulties  overcome,  it  will  be  possible  to continue with the
activities  of  Baltika  and  retain  several  valuable  jobs.  In addition, the
successful  reorganisation of the company would help to ensure the durability of
the  Estonian design  industry, as  Baltika Group  is the  only Estonian fashion
company  that exports much of its production and offers professional work in the
field of industrial fashion.

Following  the  commencement  of  the  reorganisation  proceedings, Baltika must
prepare  a  reorganisation  plan.  The  court  has  set  a  date  to present the
reorganisation   plan   to   the   court   for  approval  by  May  25, 2020. The
reorganisation  plan  will  be  prepared  in  consultation  with  Baltika's main
partners.  The reorganisation plan specifies  which reorganisation measures will
be implemented, including the impact of the reorganisation on the creditors. The
reorganisation  plan is accepted  by way of  voting of the  creditors. The final
decision  on whether to approve the plan  is up to the court. The reorganisation
only concerns AS Baltika, not any other Baltika Group entities.

Maigi Pärnik-Pernik
Member of the Management Board
maigi.parnik@baltikagroup.com
(https://www.globenewswire.com/Tracker?data=GDF4io6NaWPhtHKMkjH5pIkvUAH4tC90-
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