Snaigė seeks bankruptcy after restructuring efforts fail

Lithuanian refrigerator maker Snaigė, the only refrigerator manufacturer in the Baltic states, is seeking bankruptcy after giving up on restructuring amid poor market conditions, uncertain prospects and continuing losses, ERR reported.

Chief Executive Darius Varnas asked Kaunas Regional Court on Wednesday to end the company’s restructuring proceedings and start bankruptcy proceedings, the company said Thursday.

“Efforts to optimise and reorganise operations did not produce the expected results,” Varnas said. Snaigė had stopped making household refrigerators and shifted its focus to specialised medical refrigerators and monoblock refrigeration units, a direction he said was right for the company.

However, Varnas said the company was still burdened by liabilities accumulated under previous owners, a persistent shortage of working capital and limited access to loans. Snaigė said it owes creditors more than 12 million euros and recorded a loss of 670,000 euros last year.

The company is headquartered in Alytus, Lithuania, where it has manufactured refrigeration equipment for decades.