The Harju County Court will hold a hearing on the reorganization plan of Baltika on June 18 and decide about the approval of the reorganization plan no later than on June 22, the listed Estonian garment seller informed the stock exchange on Wednesday.
AS Baltika submitted the reorganization plan approved by the creditors to the court on May 22. On May 25, one application was submitted for the court to not approve the reorganization plan, the Baltic News Service reports.
On May 26, Harju County Court forwarded a court ruling to AS Baltika and the company's creditors in which the court stated that it is preparing to resolve the matter of approval of AS Baltika's reorganization plan, resolved certain procedural issues and asked AS Baltika's reorganization advisor to provide additional information, Baltika said.
Creditors accepted the reorganization plan of Baltika in a vote last week.
Baltika has said that a successful restructuring will enable Baltika itself, as well as its subsidiaries, to continue business activities and to preserve numerous jobs in Estonia, Latvia and Lithuania.
Baltika's temporary payment difficulties and liquidity problems have been caused by global COVID-19 crisis and inability to meet obligations arising from exiting production activities, according to the company.
Baltika asking Kredex to leave €4 million loan decision in force
On Thursday, ERR's online news in Estonian reported that Baltika has sent a letter to the Minister of Foreign Trade and IT Raul Siem (EKRE) and Secretary General of the Ministry of Economic Affairs Ando Leppiman, the chairman of the supervisory board of Kredex, requesting to maintain Kredex's decision to grant a loan of €4 million to the company.
"We regret that Kredex is withdrawing from the written promise sent on April 30, which created a legitimate expectation in an Estonian company with a long history and numerous jobs. Kredex later informed Baltika that the issuance of the loan would also be discussed by the foundation's supervisory board," the CEO said.
"We find it regrettable that Kredex is withdrawing from the written promise sent on April 30, which created an expectation in an Estonian company with a long history and numerous jobs," CEO of Baltika Flavio Perini said in the letter.
"We confirm that Baltika meets all the conditions for applying for an emergency loan from Kredex as was decided on April 30," Perini said, adding that if the supervisory board of Kredex will change the decision of the Kredex Credit Committee, Baltika might go bankrupt.
Editor: Anders Nõmm