Restructuring process of FERN Group is being initiated
A restructuring process is being initiated for the engineering solutions group FERN Group which has faced financial difficulties.
Bankruptcy proceedings will be initiated for the group’s insolvent companies FERN EPC and Montuotojas, while FERN Group itself and its subsidiary FERN Production will continue operations, with the aim of restructuring and improving efficiency. The subsidiary Ardynas will continue its business as usual.
“Fund’s portfolio naturally includes very successful companies, average performers, and some that require tough decisions. Clearly, our decision to invest in this engineering solutions group, which lacked a strong long-term management team, was not the right one. We actively worked with this investment for six years, implemented a series of strategic changes, number of times changed the management team aiming to form the best one. However, despite all our efforts to ensure sustainable operations and preserve jobs within the group, none of the strategic measures delivered the expected results. This restructuring process is essential and works in the best interests of the group’s employees, the fund’s investors, the group’s creditors, and all stakeholders” said Deimantė Korsakaitė, Managing Partner at INVL Baltic Sea Growth Fund.
The companies FERN EPC and Montuotojas, for which bankruptcy proceedings will be initiated, employ 155 people.
“The fund has built a portfolio of 10 investments. Following the sale of InMedica, we now manage a portfolio of 9 companies. The restructuring process initiated by FERN Group does not significantly affect our expectations regarding the fund’s overall long-term returns for investors,” Managing Partner at INVL Baltic Sea Growth Fund added.
INVL Baltic Sea Growth Fund, the leading private equity fund in the Baltics and owner of FERN Group, will fulfil its obligation to redeem the guaranteed EUR 8 million bond issue, as well as any commitments under issued guarantees if required. FERN Group has no bank financing.
About the INVL Baltic Sea Growth Fund
With a size of EUR 165 million, the INVL Baltic Sea Growth Fund is the leading private equity fund in the Baltics. Its anchor investor is the European Investment Fund (EIF).
The EIF, which is a part of the European Investment Bank, has committed EUR 30 million with the support of the European Fund for Strategic Investments (a key element of the Investment Plan for Europe, or the Junker Plan) while also allocating resources from the Baltic Innovation Fund, a “fund of funds” initiative developed in cooperation with the governments of Lithuania, Latvia and Estonia. The initiative aims to increase capital investment in high-growth potential small and medium-sized enterprises in the Baltics.
The fund focused on investments in the Baltic countries and neighbouring regions such as Poland, the Nordics, and Central Europe. The INVL Baltic Sea Growth Fund has a diversified portfolio of nine companies. That includes companies operating in the food processing, healthcare, medical rehabilitation, civil engineering, plastic recycling, environmental management, and veterinary services sectors, as well as in the manufacturing of cosmetics and hygiene products.
The fund is managed by INVL Asset Management, the leading alternative asset manager in the Baltics and part of the Invalda INVL group, which has been in the investment management business for more than 30 years. The group’s companies manage or have under supervision EUR 2 billion of assets under management across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate, and private debt. The group’s activities also include family office services in Lithuania, Latvia, and Estonia, management of pension funds in Latvia, and investments in global third-party funds.
Important information
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