The Harju County court declared Elveda OÜ bankrupt on Wednesday. Elveda is the parent company of dairy producer AS Tere. Members of Tere’s supervisory and management boards were changed, and Aivar Rehe appointed the new chief executive.
Elveda is owned by Oliver Kruuda, whose representatives announced that they were going to appeal the ruling.
Barrister Maire Arm, who was appointed liquidator in the case, announced that she had recalled members of the supervisory board of Tere and appointed a new board, and that the new board had replaced the company’s management as well.
The new lineup of the supervisory board includes Arm, chairman of the supervisory board of Halinga OÜ Teet Mõtte, Eesti Talleks CEO Taavi Toots, and lawyer Jaanus Mody, who over the last few years represented commercial banks in debates concerning Tere.
The newly appointed CEO of Tere, Aivar Rehe, has previously worked in high positions in Ühinenud Meiereid (United Dairies), Hoiupank, Hansapank, the Tax and Customs Board, and Danske Bank.
Elveda’s representatives argued against bankruptcy, and intend to contest the ruling in a second-tier court. “We will certainly appeal to the circuit court," attorney Veikko Puolakainen wrote in a press release. “In our opinion, the parent company is not insolvent, and our legal take on the basis of the claim does not coincide with the county court’s position either.”
The primary aim of the new supervisory and management boards of Tere is to ensure the company’s continued operation, and meeting procurement and supply contracts.
Elveda’s bankruptcy does not have a direct impact on Tere’s day-to-day work, Elveda owner Oliver Kruuda said. They had been in talks with interested parties, and were confident to reach a solution the company’s creditors could accept as well.
As of July, Tere owed more than €30m to banks, around €20m to suppliers, and €800,000 to the state in unpaid taxes. Its biggest creditors are DNB Bank, with €15.4m, the Estonian branch of Nordea Bank with €14m, and Nordea Finance Estonia with €4.9m.
Editor: Editor: Dario Cavegn