AS Baltika’s reorganization proceedings, advised by COBALT, came to a successful termination

COBALT advised and represented AS Baltika in the reorganization procedures.

AS Baltika is Estonia’s largest clothing manufacturer with a long history, which together with its subsidiaries employs more than 100 people. Baltika develops and operates the clothing brand Ivo Nikkolo.

At the beginning of the 2020 corona pandemic, Baltika got into temporary payment difficulties and submitted a petition to the court to initiate restructuring proceedings. By the summer, the restructuring plan was approved. The deadline for the implementation of the plan was the end of 2023, by which time the measures stipulated in the plan were implemented by Baltika.

Baltika is one of the few companies that has successfully undergone reorganization proceedings, despite the additional corona waves and the war in Ukraine, which also had an impact on their business. Although it was the parent company Baltika, that was reorganized, the reorganization had an indirect effect on the entire group, which operates throughout the Baltics.

COBALT advised AS Baltika on carrying out the reorganization procedings, including the preparation and successful execution of the reorganization plan. Our team was led by Managing Partner Jaanus Mody and Managing Associate Annika Peetsalu. Baltika’s reorganization advisor was Artur Suits from Grant Thornton.