LAWIN Vilnius represented Alita Group in debt conversion to equity deal with FR&R Invest, Swedbank’s investment company

Today, on September 7, 2011, Mr. Vytautas Junevičius, the largest shareholder and Chairman of the Board of Alita Group, and Swedbank’s investment company FR&R Invest, have signed a debt conversion to equity agreement. According to the agreement, FR&R Invest will acquire newly issued shares of Alita Group, Lithuania’s leading sparkling wine producer, through conversion of the Group’s debt into equity. Thus, FR&R Invest will hold 84.4 percent of the Group’s shares and the financial liabilities of Alita Group will be reduced by more than LTL 96 million after the deal will be closed. Mr. Vytautas Junevičius’ holding will remain at 14.5 percent in Alita Group.

The debt conversion to equity agreement with Swedbank’s investment company will help to make Alita Group sustainable in the long-term by reducing the debt burden. After closing of the deal, a mandatory tender offer will be made by FR&R Invest regarding the remaining stocks of Alita Group listed in the NASDAQ OMX Vilnius stock exchange.

“The agreement with FR&R Invest is the essential turning point during the most complicated period in the Alita Group history. It would be impossible to optimise group operations and adapt to very complicated market conditions with the current burden of financial liabilities. After this transaction the company will be able to take a breath, restore its cash flow and focus on business development opportunities and strengthening of its well-known brands in the market. I am ready to share my experience and knowledge with the new co-owner of the Group”, - said Mr. Vytautas Junevičius, Chairman of the Board at Alita Group.

LAWIN Vilnius, a leading law firm in the Baltics, and JTC/Bridge Capital represented Alita Group in the transaction. Ms Dovile Burgiene, a Partner and the Project Leader at LAWIN Vilnius, emphasises that the deal is one the largest and most complex restructuring projects in the Baltics in recent years.

“I also would like to note that LAWIN Vilnius have been together with its client, Alita Group, since a very beginning of the process more than 2 years ago. The deal was very interesting and complex, involving numerous professionals from different LAWIN Vilnius’ Practice Groups, and I am extremely honoured we have managed to represent our client’s interests in the best possible way”, says Ms Burgiene.