VILNIUS — In a move it says is designed to recover investment money, VP Grupė is drastically reducing its subsidiary Maxima Group’s share capital from 3.97 billion litai (€1.15 billion) to 194.1 million litai (€56 million).

The pan-Baltic supermarket chain has suffered significantly since the economic crisis began and the shareholders are adjusting the company’s share capital as a result. Maxima already reduced its share capital by 795 million litai (€232 million) in March to compensate for [private_supervisor]losses incurred by the group’s companies during 2009. In 2009, the company’s turnover decreased 9.1 percent year-on-year.

“Two years ago, when forming the Maxima Group’s capital, there were plans for a significantly more ambitious developments and investment, so the company put up capital amounting to 4.96 billion litai (€1.4 billion). Unfortunately, the economic crisis has significantly modified the strategy of the company — growth was arrested by the development of the Baltic countries and severely restricted investments,” Diana Dominienė, VP Grupė marketing director said.

Under Lithuanian law, the maximum reduction of a company’s authorized capital is limited so there is a remaining figure 10 times greater than its accumulated profits. Currently, the Maxima Group has 19.41 million litai (€5.6 million) in statutory profit reserve, so capital can be reduced to 194.1 million litai.

VP Grupė may replace it two months later with “billions” more in capital according to anonymous sources that spoke with the business newspaper Verslo Žinios.

Another option would be for the VP Grupė to dissolve the UAB, which would absolve the mother company of any outstanding debts. In-depth details on the company’s finances are not available, as UABs do not need to be publicly audited under Lithuanian law. VP Grupė is privately held, the second-largest company in Lithuania and sometimes criticized by politicians and the Lithuanian media as being oligarchic given its size.

Maxima Group’s subsidiaries include Maxima LT, Maxima Bulgaria, Maxima Latvija, Maxima Eesti, Ermitažas and other companies. [/private_supervisor] [private_subscription 1 month]losses incurred by the group’s companies during 2009. In 2009, the company’s turnover decreased 9.1 percent year-on-year.

“Two years ago, when forming the Maxima Group’s capital, there were plans for a significantly more ambitious developments and investment, so the company put up capital amounting to 4.96 billion litai (€1.4 billion). Unfortunately, the economic crisis has significantly modified the strategy of the company — growth was arrested by the development of the Baltic countries and severely restricted investments,” Diana Dominienė, VP Grupė marketing director said.

Under Lithuanian law, the maximum reduction of a company’s authorized capital is limited so there is a remaining figure 10 times greater than its accumulated profits. Currently, the Maxima Group has 19.41 million litai (€5.6 million) in statutory profit reserve, so capital can be reduced to 194.1 million litai.

VP Grupė may replace it two months later with “billions” more in capital according to anonymous sources that spoke with the business newspaper Verslo Žinios.

Another option would be for the VP Grupė to dissolve the UAB, which would absolve the mother company of any outstanding debts. In-depth details on the company’s finances are not available, as UABs do not need to be publicly audited under Lithuanian law. VP Grupė is privately held, the second-largest company in Lithuania and sometimes criticized by politicians and the Lithuanian media as being oligarchic given its size.

Maxima Group’s subsidiaries include Maxima LT, Maxima Bulgaria, Maxima Latvija, Maxima Eesti, Ermitažas and other companies. [/private_subscription 1 month] [private_subscription 4 months]losses incurred by the group’s companies during 2009. In 2009, the company’s turnover decreased 9.1 percent year-on-year.

“Two years ago, when forming the Maxima Group’s capital, there were plans for a significantly more ambitious developments and investment, so the company put up capital amounting to 4.96 billion litai (€1.4 billion). Unfortunately, the economic crisis has significantly modified the strategy of the company — growth was arrested by the development of the Baltic countries and severely restricted investments,” Diana Dominienė, VP Grupė marketing director said.

Under Lithuanian law, the maximum reduction of a company’s authorized capital is limited so there is a remaining figure 10 times greater than its accumulated profits. Currently, the Maxima Group has 19.41 million litai (€5.6 million) in statutory profit reserve, so capital can be reduced to 194.1 million litai.

VP Grupė may replace it two months later with “billions” more in capital according to anonymous sources that spoke with the business newspaper Verslo Žinios.

Another option would be for the VP Grupė to dissolve the UAB, which would absolve the mother company of any outstanding debts. In-depth details on the company’s finances are not available, as UABs do not need to be publicly audited under Lithuanian law. VP Grupė is privately held, the second-largest company in Lithuania and sometimes criticized by politicians and the Lithuanian media as being oligarchic given its size.

Maxima Group’s subsidiaries include Maxima LT, Maxima Bulgaria, Maxima Latvija, Maxima Eesti, Ermitažas and other companies. [/private_subscription 4 months] [private_subscription 1 year]losses incurred by the group’s companies during 2009. In 2009, the company’s turnover decreased 9.1 percent year-on-year.

“Two years ago, when forming the Maxima Group’s capital, there were plans for a significantly more ambitious developments and investment, so the company put up capital amounting to 4.96 billion litai (€1.4 billion). Unfortunately, the economic crisis has significantly modified the strategy of the company — growth was arrested by the development of the Baltic countries and severely restricted investments,” Diana Dominienė, VP Grupė marketing director said.

Under Lithuanian law, the maximum reduction of a company’s authorized capital is limited so there is a remaining figure 10 times greater than its accumulated profits. Currently, the Maxima Group has 19.41 million litai (€5.6 million) in statutory profit reserve, so capital can be reduced to 194.1 million litai.

VP Grupė may replace it two months later with “billions” more in capital according to anonymous sources that spoke with the business newspaper Verslo Žinios.

Another option would be for the VP Grupė to dissolve the UAB, which would absolve the mother company of any outstanding debts. In-depth details on the company’s finances are not available, as UABs do not need to be publicly audited under Lithuanian law. VP Grupė is privately held, the second-largest company in Lithuania and sometimes criticized by politicians and the Lithuanian media as being oligarchic given its size.

Maxima Group’s subsidiaries include Maxima LT, Maxima Bulgaria, Maxima Latvija, Maxima Eesti, Ermitažas and other companies. [/private_subscription 1 year]

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