Jet Investment Wins Selection Process as Investor for BATIST Group

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(Prague/Brno, July 11)

The creditors' committees of BATIST Medical a.s. and BATIST Medical Productions have acknowledged the outcome of the selection process that resulted in the selection of an investor for the Czech entities of the BATIST Medical group. The chosen investor, through the Jet 3 fund, is Jet Investment, a Brno-based investment company, marking their first investment in the medical and healthcare products sector.

"Batist is a strong brand with a long-standing history in the Central European region, particularly in the Czech Republic and Slovakia. We are thrilled to contribute to the rescue of another traditional company, just as we have successfully done with Kordárna and MSV Metal Studénka. Moreover, for Jet Investment, this represents a strategic entry into the healthcare sector, and we have more acquisitions planned in this field, not only in the Czech Republic but also in Poland," stated Marek Malík, Partner at Jet Investment.

"The group has high-quality products and a broad, diversified customer portfolio that supported Batist during challenging times. We also highly value the hard work of the employees over the past few months. Our focus now is on further developing the product portfolio, both in manufacturing and supply," added Petr Filka, Project Director at Jet Investment.

The accelerated selection process, as part of the restructuring, has been underway since March of this year under the guidance of financial and legal advisors from PwC and White & Case, under the supervision of insolvency administrator Jan Mašek. The aim was to secure an investor as quickly as possible to minimize the impact of the insolvency proceedings on the company's operations.

Jet Investment is expected to enter both entities (BMAS and BMP) as part of the ongoing reorganization, actively participating in the preparation of the restructuring plans. The investment would grant Jet Investment a 100% stake in both companies, as well as the manufacturing and distribution facility in Červený Kostelec. According to the estimated schedule, the presentation of the restructuring plans is set to take place in August 2023. Creditors will vote on their acceptance and Jet Investment's entry into both entities in the following month, during the creditors' meeting.

"For current business partners and Batist employees, the entry of a strong partner signifies a significant boost, ensuring economic stability and fostering further growth. I believe we will witness a successful scenario similar to what we experienced with the same investor in the Kordárna project," said Petr Smutný, Managing Partner at PwC Czech Republic for Restructuring.

This collaboration recalls their historic partnership in 2010 when, as part of the largest Czech restructuring at the time, Jet Investment entered Kordárna Plus, a manufacturer of technical textiles for the rubber industry. The investor not only managed to rescue the company but also significantly expanded it, tripling both sales and the number of employees. After eight years, the company was sold to the Thai petrochemical giant Indorama Ventures.

BATIST Medical group faced economic difficulties throughout 2022. These challenges were caused by the rising prices of purchased goods and energy, which couldn't be fully reflected in customer prices due to the post-pandemic market downturn, during which states depleted their material reserves to supply hospitals.

Furthermore, the group's financial situation was negatively affected by fraudulent activities in two business cases, resulting in approximately CZK 150 million in losses and deposits. The economic challenges led to the filing of insolvency petitions for BATIST Medical Holding, BATIST Medical a.s., and BATIST Medical Productions.

At the creditors' meetings in June, the creditors approved the reorganization of BATIST Medical a.s. and BATIST Medical Productions. For BATIST Medical Holding, liquidation was the preferred solution, which would involve the sale of assets, including equity stakes in the Portuguese and Spanish entities of BATIST.

The investor's entry is a crucial part of the reorganization of BATIST Medical a.s. and BATIST Medical Productions. The reorganization process also includes the monetization of non-operational assets and the collection of receivables from the Portuguese entity BATIST. PricewaterhouseCoopers and the law firm White & Case have been entrusted with the preparation of the reorganization and restructuring plans for BATIST Medical a.s. and BATIST Medical Productions.

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