We confirm that an offer was made to the company’s shareholder to sell its shares. The interest in acquiring the shares was conveyed by one of the executives of the competing company Ecoservice. After the offer was rejected, we were informed within a few days that all contracts would be terminated.
Financial pressure
“A consistent and deliberate sequence of actions is becoming apparent. After a new head of VAATC was appointed, all payments under our valid contracts were suspended, we were prevented from using factoring services and from borrowing funds. When we encountered a shortage of working capital, we received an offer to sell our shares. We rejected it, and shortly afterwards it was announced that all contracts with us were being terminated,” says Algirdas Blazgys, CEO of Energesman.
The offer to acquire the shares was received on 8 July and was communicated through a third party via a messaging application.
We invite you to watch the latest episode by blogger Skirmantas Malinauskas, in which he cites his own sources indicating that there are indeed parties interested in taking over our company’s operations. Our topic begins at minute 43, but we also encourage you to watch the first part of the episode, as it provides a revealing perspective on how state institutions can become instruments in the hands of influential individuals.
Contracts terminated after the offer was rejected
The termination of the contracts was announced on 10 July, shortly before the end of the working day. The company was not allowed to participate in the board meeting at which this important decision, carrying significant consequences for the entire region, was taken.
The decision was also not discussed with the other seven municipalities of the Vilnius region whose waste is processed at the facility. These municipalities are minority shareholders of VAATC, and their status does not diminish their right to be informed and involved in decisions of such importance.
The contract termination documents were prepared hastily and unprofessionally. They did not include the 20-business-day notice period required under the facility operating agreement.
The reasons cited for termination were long-standing and complex issues in which VAATC itself and the Vilnius City Municipality are involved, and it was therefore well known that these issues could not be resolved within 20 business days.
Preparatory work had already been completed
“At this stage it is highly advantageous for a competitor to take over the facility, because the preparatory work for reconstruction and modernisation has already been completed. VAATC has full information about the equipment manufacturers and their contacts, as tripartite agreements had already been signed,” says Blazgys.
Most of the building reconstruction work has also already been completed. All load-bearing structures have been installed; only the façade and roof cladding remain to be fixed in place. These materials have already been delivered to the facility and have now been taken over by VAATC.
VAATC took over the facility despite the court not explicitly authorising it
On the evening of Friday, 24 July, VAATC, accompanied by a group of security personnel, took over the operation of the Vilnius waste treatment facility. The Mayor of Vilnius, Valdas Benkunskas, was also present at the site. VAATC is currently advertising vacancies on recruitment portals and social media for employees to operate the facility, and attempts were made to recruit Energesman employees as well.
VAATC relied on a ruling issued by the Vilnius District Court on Friday. However, the ruling does not state that VAATC is entitled to take over the operation of the facility. It expressly grants only the right to dispose of the MBA buildings and equipment and to allow VAATC representatives access to the site.
The ruling has created a legal contradiction because the right of disposal is clearly defined by law. It allows an owner to sell, donate, pledge or otherwise dispose of property, but it does not grant the right to possess, manage or use that property. VAATC did not request the right to operate the waste treatment facility in its claim, and the court therefore did not grant such a right.
Energesman was denied access and its property was also taken over
“The takeover of the facility shows many signs of unlawful self-help. If it is established in court that VAATC had no right to take over the facility and significant damage is found to have been caused, criminal liability may arise,” says Dr Paulius Miliauskas, Partner at the law firm Miliauskas ir Lauraitytė.
On Friday, VAATC representatives did not allow Energesman’s CEO to enter the facility, prevented him from collecting his personal belongings, and did not allow an inventory of Energesman property remaining on the site to be made.
Energesman’s shredders, magnets, bioconversion equipment, construction materials, computers and other assets remain at the facility. Their value amounts to several million euros.
The City of Vilnius owns 76.51% of VAATC shares, while the remaining shares are held by other municipalities of the Vilnius region.