LEXTAL helps a baby food producer overcome financial difficulties
Tartu County Court decided to initiate a restructuring process for the dairy production company AS Solbritt and appointed attorney at law at Law Firm LEXTAL, Ksenia Kravtšenko, as the restructuring advisor. AS Solbritt is a dairy production company whose factory has operated for 85 years. In 2005, they partnered with the Nutritec dairy group to mainly produce Nutrilak powdered milk blends under the trademark Nuppi. The advisor believes the circumstances outlined in the entrepreneur’s application support a positive outlook for the company’s recovery. The management’s past actions have been successful, and the future plans are realistic, providing hope for an effective process.
Over the past couple of years, several crises have affected entrepreneurs. The COVID-19 pandemic and changes in the European Union’s economy led to worldwide disruptions in logistics and supply chains. In the second half of 2021, manufacturers faced an unprecedented surge in raw and packaging material prices. Furthermore, from late 2021 until the fall of 2022, there was a catastrophic increase in energy resource prices, with gas and electricity prices doubling and sometimes even quadrupling. Then, the war in Ukraine struck, having an unprecedented and multifaceted effect on European countries, people, and businesses.
Even those entrepreneurs who managed to stay afloat and continue their business activities may still have to be able to resolve the accumulated debt. Many are facing disputes over the timing and size of penalties with creditors. Both parties must reach a mutually satisfactory and amicable agreement on how the entrepreneur can improve their financial situation and over what time period it should be done.
It’s a standard false belief that restructuring implies economic failure for the entrepreneur, imminent bankruptcy, and financial loss for the creditor. In reality, it’s an opportunity to heal the business by restructuring activities.