LIFOSA

MATERIAL EVENT



SITTING OF MANAGEM. BOARD AND MEETING OF PRINCIPAL CREDITOR



On 20 March 2002, a sitting of the Management Board of AB Lifosa and a meeting

of principal creditors of AB Lifosa took place.

The Management Board of AB Lifosa authorized the company’s director general to

promptly convoke a meeting of the company’s principal creditors regarding

restructuring of the company.

At the meeting, creditors representing 61% of all credit claims participated.

Creditors whose claims are secured also took part in the meeting.

Claims represented by participating major creditors (as defined in the Law on

Restructuring of Enterprises of the republic of Lithuania) accounted for 55.7%

of the total amount claimed by all creditors of AB Lifosa, therefore, this

meeting shall be deemed the first meeting of creditors.

The creditors’ meeting resolved:

1) deem this meeting the first meeting of creditors, as defined in the Law on

Restructuring of Enterprises of the republic of Lithuania;

2) apply to the court to initiate AB Lifosa restructuring proceedings;

3) nominate the candidature of the enterprise administrator and the terms and

conditions of the contract of agency and approve the estimate of administration

expenses;

4) approve the guidelines of the enterprise restructuring plan;

5) determine the procedure of convening creditors’ meetings.



According to the approved guidelines of the enterprise restructuring plan, AB

Lifosa plans to fully satisfy all claims of creditors during the period of

restructuring.





Mindaugas Gedvilas

Finance director

(257) 66 595