With Agrowill Group shareholders voting in favour of restructuring, company starting to recover

At a meeting of Agrowill Group shareholders on 13 July, the shareholders voted in favour of restructuring the company. The Board of Agrowill Group proposed to restructure the company in the wake of short-term cash flow difficulties and in an effort to retain all the available production facilities and assets. The shareholders were presented with an outline of restructuring and arguments as to why the restructuring of Agrowill Group is an optimum solution in the current economic situation.  
“By voting in favour of the restructuring of Agrowill Group, the company’s shareholders showed that they were optimistic about the company’s prospects. We hope that creditors will also evaluate the arguments provided in the outline of restructuring and will approve the restructuring of Agrowill Group at the upcoming meeting of creditors,” Mindaugas Juozaitis, General Manager of Agrowill Group, said. 
The presented outline of restructuring provides arguments as to why it is worth facilitating further development of activities and why creditors should satisfy all of their claims on money somewhat later rather than satisfy part of the claims now. The start and process of restructuring depends on creditors: both the start of restructuring procedures and approval of a detailed restructuring plan require consent from a majority of creditors.
“The company underwent very aggressive development in 2008. We acquired two large companies that have nearly doubled the turnover of Agrowill Group. We had started negotiations for the acquisition of several more companies.  However, it was impossible to sell land and refinance short-term loans due to the economic crisis. Moreover, an additional gap formed in the planned cash flows as a result of a significant drop in grain and milk purchase prices. In November 2008, the shareholders replaced the company’s management that took steps to save it from bankruptcy. Now, half a year later, we can be proud that despite smaller earnings, the company enjoys a positive cash flow. This is an important achievement, particularly keeping in mind that product purchase prices have fallen by 40–50% in the past year,” Juozaitis said. 
He is convinced that Agrowill Group has huge potential which has to be used appropriately.  Given an economic crisis, restructuring is an optimum solution for a company to save its production facilities and assets and for creditors and shareholders to retain their equity. Owing to effective primary agricultural production activities, Agrowill Group should be able to earn and accumulate sufficient funds during the restructuring period to cover all financial liabilities.

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