Litigation - wilful bankruptcy

Court of Appeal of Lithuania dismissed the appeal of a manager of the bankrupt company BUAB “Europe Aluminium” and upheld the previous ruling of the Vilnius District Court declaring the bankruptcy of BUAB “Europe Aluminium” wilful, as was requested by our Law Firm representing the company’s foreign creditor. 

The actions of a former manager of BUAB “Europe Aluminium” in failing to timely submit an application for declaring the company bankrupt and concluding worthless transactions with cash payments were found by the courts to be in conflict with the interests of the company lead by the manager and company’s creditors.  Upon reviewing the facts of the case the trial court and the Court of Appeal of Lithuania came to the same conclusion that the activity of the company facing financial difficulties was organized in such a way that the chances of creditors to recover the sums due from the company’s property were limited and settlements were made without complying with the order of settling with creditors (Para 4 of Part 2 of Article 20 of the Enterprise Bankruptcy Law of the Republic of Lithuania).

The court ruling serves as a legal basis to initiate pre-trial criminal investigation in respect of the management of the company BUAB “Europe Aluminium” and the creditor represented by our Law Firm gained the opportunity to request full reimbursement of damages from such persons liable for the bankruptcy of the creditor’s debtor. 

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