Agrowill Group expecting stable year
Agrowill Group, the largest agricultural company in the Baltic states which has replaced its intensive development strategy with improvement of the efficiency of its activities this year, expects a stable financial year. The company sees current legal disputes with suppliers or customers as an outcome of the developing culture of business relations.
According to Mindaugas Juozaitis, General Manager of Agrowill Group, it is becoming an increasingly common practice in the Lithuanian business world to take a business dispute to court rather than look for a solution acceptable to both parties.
“Last year, we performed intensive development of the company, implemented a lot of various projects and became the largest EU company in terms of the area of land controlled. The company currently controls LTL 350 million worth of assets. This amount exceeds the amount of our liabilities. Business disputes arising during a large company’s cooperation with a wide range of partners are a natural phenomenon. It is much more important how such disputes are resolved,” the General Manager of Agrowill Group said.
In his words, it has become nearly a fashion in Lithuania to apply for debt recovery or bankruptcy, and it is turning into a form of pressure on business partners.
“In order to initiate bankruptcy proceedings, a company must be in a bankruptcy situation where the company’s financial condition and liabilities matter the most. Unfortunately, there is a growing number of cases of abuse of law and manipulation of laws where courts are forced to consider groundless suits. We have had a number of such cases,” Juozaitis said.
According to Juozaitis, this year, Agrowill Group companies have been operating in a stable manner and are undergoing reorganisation, which is expected to increase operating efficiency by some 40%. Agrowill Group expects positive financial results this year.