Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

Lithuania: New definition of insolvency by Frank Heemann and Aušra Zabulionytė

As explained in previous editions, a new Insolvency Law has come into force in Lithuania since 1 January 2020. This article looks at one of the law’s most essential changes, i.e. the new definition of insolvency.

Lithuania: change in organisation of the profession of insolvency practitioners: Chamber of Insolvency Administrators established by Frank Heemann and Aušra Zabulionytė

As reported in the previous issue of Eurofenix, a more contemporary insolvency law finally came into force in Lithuania on 1 January 2020. One of the major changes is the introduction of a self-governing body for insolvency practitioners.

Lithuania: the new corporate insolvency law by Frank Heemann and Aušra Zabulionytė

On 13 June 2019 the Parliament of Lithuania adopted the new Law on the Insolvency of Legal Entities (“Insolvency Law”). The law will come into force on 1 January 2020 and will replace two current laws, the Enterprise Bankruptcy Law and the Law on Restructuring of Enterprises.

Bank insolvencies in Central and Eastern European legislation by Dr. Richárd Bódis

The financial crisis of 2008 affected the economic players more than ever, with the winding-up of a large number of financial institutions worldwide. Due to the specialisation of banks among other legal entities, insolvency is a scenario to be avoided, with restructuring being the more favourable solution.

Country Reports - Update from Cyprus, Lithuania and Slovakia

Cyprus: New laws to improve the legal framework on Non-performing loans. Several new laws were enacted in July 2018 to facilitate the reduction of non-performing debt in the Cyprus banking system.

IP appointment lottery: Experiences in Lithuania, Slovakia and Hungary with random IP selection systems - by Frank HEEMANN, Dr. Arnas STONYS, Mgr Herman PIKALY and Dr. Richard BODIS

Three years ago, Lithuania introduced a new system for the appointment of insolvency practitioners (‘IP’) in certain insolvency proceedings. The basics of this new system were already described in Eurofenix. The aim of this article is to provide a first assessment and to compare this system to similar random selection systems in Slovakia and Hungary.

The Czech Republic Report: Creditors with secured contingent and future claims have gained more certainty

On 1 July 2017, an extensive amendment to the Insolvency Act shall take effect. The amendment brings several substantial changes to a number of aspects pertaining to insolvency proceedings, including security of future or contingent claims (including bank guarantees), the assessment of a company’s insolvency and the discharge from debts.

Lithuania Report: Avoidance actions and good faith – what to observe when doing business with Lithuanian companies

Recent Lithuanian case law confirms that businesses ought to be very cautious and take active steps before entering into transactions with Lithuanian companies potentially facing difficulties. Otherwise, they risk having to return what they received from the transaction if insolvency proceedings are opened against the company and the administrator brings a claw-back claim. Lithuanian insolvency administrators examine the debtor’s transactions concluded within the 36 months before the opening of the proceedings.

Article from INSOL Europe (13 - 19 March 2017) GlobalINSOLvency Editorial Board

Personal guarantees are a very old form of security, used almost universally. Everyone is familiar with the concept of the director’s personal guarantee. Generally this works to the benefit of the company by making it possible for the lender to advance necessary working capital.

"Country report - Lithuania" by Frank Heemann and Karolina Gasparke

New rules for fixing administration expenses: one step closer to a more effective and transparent insolvency procedure. Recent amendments to the Lithuanian Enterprise Bankruptcy Law (EBL) and new Rules on Calculation of Remuneration and Administration Expenses1 (Rules) in effect since 1 May 2016 are expected to bring further improvements to Lithuanian insolvency procedures.