Such a provision will protect enterprises against the commencement of sudden insolvency proceedings, while encouraging company managers not to ignore their creditors and to seek out-of-court settlements with them, as creditors retain the right to commence insolvency proceedings at the end of the prescribed period after quarantine and in the absence of an out-of-court settlement within the prescribed period. Under the LILE, the restructuring process can be initiated by the entrepreneur or by a creditor whose (overdue) claim exceeds 10 months` minimum wage. The most important requirements for a legal person wishing to initiate the restructuring process are: 4. 10 of this Law must refuse to include a legal person on the list and send a reasoned notification to the legal person by registered letter no later than 10 working days from the date of filing of the documents if the legal person does not meet the conditions of Article 112, paragraph 4, of this Act. Can court decisions to open insolvency proceedings be registered in the land register under your legislation? If so, what are the implications of these recordings? 16) Organization and control of income accounts received in connection with the management, use and disposal of the assets of the bankrupt company and the accounting of costs, as well as in the insolvency proceedings of the company and in the manner prescribed by legal acts, preparation and presentation of annual financial reports (balance sheet and profit and loss account). In cases where the company has not filed tax returns and other documents, the administrator must give the competent institutions the opportunity to carry out documentary checks and checks to determine the data to be provided in tax returns or other documents not submitted; 5. The proceeds from the sale of assets and debt rights shall be used to cover legal and administrative costs. If, after the opening of the simplified bankruptcy procedure, it is established that the proceeds from the sale of the company`s assets and claims will be twice as high as necessary to cover the legal and administrative costs, the court shall issue a decision terminating the conduct of the simplified bankruptcy procedure and a decision on the conduct of the commercial bankruptcy proceedings in accordance with the general procedure: those provided for by this Act for the hearing of bankruptcy proceedings before the courts. 7.

Where the proceeds from the disposal of the undertaking`s assets and unsecured claims exceed the amount necessary to cover the legal and administrative costs, but not the amount referred to in paragraph 5, the remaining funds shall be used to satisfy the claims of the undertaking`s employees, the creditors. with regard to industrial relations. (19) be empowered by the State Tax Inspectorate, the administrative authorities of the State Social Insurance Fund, the Statistical Office of Lithuania, the State Centre for the Business Register and other natural and legal persons, including banks and other credit institutions, financial and insurance companies, in the manner prescribed by legal acts, to provide all necessary information on the past and current activities of the bankrupt; The administration, its former and present employees, past and present assets, etc., shall also receive copies of documents, reports, information, audit reports, etc. submitted by the persons referred to in this subparagraph. In cases where the company is an entity with unlimited civil liability, it has the right to receive, free of charge, information on assets (securities) registered in the name of the owner (owner) of the company institutions registering assets (securities) in accordance with the procedure established by law, as well as banks, other credit institutions and insurance companies – information on the assets (securities) recorded by the sums held or owed by them. receive; There are two types of insolvency proceedings: 10. If the court has reasonable grounds to believe that the company has no assets or that its assets are insufficient to cover legal and administrative costs, it must recommend that the person who has filed an application for commencement of insolvency proceedings with the court pay an amount determined by the court within five working days of the referral to the court`s deposit account. This amount may not exceed LTL 10,000. If the designated person pays the amount determined by the court within the time limit fixed by the court, bankruptcy proceedings may be initiated and heard in accordance with the simplified bankruptcy procedure. The amount paid into the court`s deposit account is used to cover legal and administrative costs on the instructions of the bankruptcy judge. (1) obliges the persons who were and are authorized to act on behalf of the company to the owner (owner), the chief accountant (accountant), the head of a structural department responsible for the accounting of the company, to submit to the court the documents necessary for the hearing of the bankruptcy proceedings and to value the assets of the company in the manner prescribed by the legal acts; Article 10 of the Law on Business Bankruptcy provides: When deciding on the opening of insolvency proceedings, the court or judge must: The new Law No XIII-2221 on the insolvency of legal persons of the Republic of Lithuania implements the legislation of the European Union: Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings. 2015 L 141, p.

19). 1. The institution designated by the Government in Article 11(10) of this Law shall establish, in accordance with the procedure established by the Government or the institution authorised by it, a list of persons providing business insolvency administration services (hereinafter referred to as the `list`). Natural and legal persons on the list acquire the right to provide corporate insolvency administration services from the date of listing. Art. 44K The court may limit the right of a person to hold the office of head of a legal person governed by public and/or private law or to be a member of a collegiate management body for a period of three to five years if, if required by law, the person has not filed an application for the opening of bankruptcy proceedings and the assets and/or documents are not located at the time of entry into force of the decision to open bankruptcy proceedings. avoided providing all information necessary for the insolvency proceedings or otherwise obstructed the insolvency proceedings. The court shall inform the government-approved entity referred to in Article 11, paragraph 10, of this Law no later than the working day following the entry into force of the decision (decision) limiting this right to limit this right to limit the right of a person to exercise the body referred to in this paragraph. That body shall draw up a list of natural persons who, for the reasons referred to in this paragraph, are prohibited from acting as heads of a legal person governed by public and/or private law or from being members of the collegiate management body. Such persons shall be included on the list no later than two working days after receipt of the information provided by the court. The list must contain the following data: the surname and first name of the natural person, the date of judicial decision (decision), the period during which the person is not entitled to exercise the function of head of a legal person governed by public and/or private law or to be a member of the collegiate management body.

The list must be published on the website of the government-approved entity referred to in Article 11(10) of this Law. (3) have served as deputy administrator for at least two years in the last three years, at least five years as head of an undertaking in the last seven years, or have been recognised as a lawyer in accordance with the procedure laid down in legal acts; The law defines the insolvency of a legal person as the state of the legal person if it is unable to meet its asset obligations in time, or if the obligations of the legal person exceed the value of its assets (Article 2). According to the law, the right to open insolvency proceedings (restructuring) belongs to the head of a legal person and to a creditor whose claims against the legal person exceed 10 monthly minimum wages (MMW) approved by the Government of the Republic of Lithuania (in July 2021, the MMW in Lithuania was €642) (Article 4). With regard to the opening of insolvency proceedings of a legal person, article 10 of the law provides for the possibility for the legal person to agree on assistance to creditors (article 10). The support agreement is an agreement between a legal person and one or more creditors for the provision of assistance by that entity to overcome financial difficulties. Assistance to the legal person in overcoming financial difficulties may take the form of postponing the performance of the commitment period, waiving a right to perform obligations or part thereof, or replacing one obligation with another.