AUGA Group Revokes General Meeting and Extends Restructuring Deadline
AUGA Group's Recent Decision on Restructuring Plans
In a significant development, the Board of AUGA Group, RAB, has made a crucial decision to revoke the extraordinary General Meeting of Shareholders that was set to occur. This decision comes amid a backdrop of ongoing restructuring efforts and evolving legal circumstances that significantly affect the Company and its stakeholders.
Understanding the Court's Decision
The Vilnius Regional Court recently issued a ruling that impacts the timeline for the Company's restructuring plan submission. The deadline has been extended until a specified date to ensure that all contested creditor claims can be adequately addressed. This decision is pivotal, as it reflects the legal framework surrounding insolvency and creditor rights. Currently, there are outstanding issues that hinder creditors from making informed decisions in line with the Insolvency Law.
Divided Claims and Their Implications
Creditors' claims have been categorized into multiple separate cases, with some having progressed further than others. To date, claims validated by the court amount to a substantial EUR 41.2 million, while there remains an additional EUR 48.7 million still under judicial scrutiny. This division is critical as it influences the ability to form a creditor majority, a requirement under the Insolvency Law for making binding decisions at meetings of creditors.
New Meeting Schedule for Creditors
Due to ongoing legal assessments and the present situation regarding contested claims, the originally planned creditors' meeting has been rescheduled. Instead of the initial date, creditors will convene in early August to discuss developments and make decisions as needed, contributing to the restructuring process in a timely manner.
The Road to Restructuring Approval
AUGA Group remains optimistic that the majority of contested claims will be addressed shortly, paving the way for the essential approval of the restructuring plan. Once the outstanding issues are clarified, the Company plans to convene a General Meeting of Shareholders to relay important developments, in accordance with their corporate governance guidelines and applicable laws.
Contact Information for Stakeholders
For any inquiries or further information, stakeholders can reach out to the CEO of AUGA Group, Elina Chodzkait?-Barauskien?, at the contact number provided. This open line of communication is an essential part of ensuring that all parties remain informed and engaged.
Contacts:
AUGA group, RAB CEO
Elina Chodzkait?-Barauskien?
+370 5 233 5340
Frequently Asked Questions
What is the reason for the revocation of the General Meeting?
The revocation relates to an extension granted by the court for the deadline concerning the restructuring plan, allowing more time to address unresolved creditor claims.
What are the current issues affecting the creditors' decisions?
Unresolved claims regarding creditors prevent a majority decision-making process, impacting overall progress in the restructuring efforts.
When is the new creditors' meeting scheduled?
The creditors' meeting has been rescheduled to early August, providing an opportunity to address claims and make necessary decisions.
What is the significance of the company's restructuring plan?
The restructuring plan is essential for the company to stabilize financially and navigate through ongoing creditor claims to emerge successfully from insolvency proceedings.
Who can stakeholders contact for more information?
Stakeholders can contact Elina Chodzkait?-Barauskien?, the CEO of AUGA Group, for any inquiries regarding the current situation and next steps.
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