It is being reported that the Latvian State Security Service (the VDD) has discontinued a criminal investigation started in November 2023 into the sale of a helicopter by a company indirectly co-owned by the designated person Petr Aven .
Creditors are often faced with the long-term default of a counterparty. One of the options offered by the legislator is to open insolvency proceedings against the debtor, with the help of which the fullest possible fulfillment of obligations can be achieved. Insolvency proceedings of a legal entity are a set of measures, of a legal nature, within the framework of which the claims of creditors are covered by the debtor's assets in order to facilitate the fulfillment of the debtor's obligations.
On 18 March 2021, the Latvian Parliament adopted amendments to the Latvian Law on the Suppression of Consequences of the Spread of COVID-19 Infection (“the Latvian Covid-19 Law”) that provide for a further extension of the insolvency moratorium.
Suspension of creditors’ right to file for insolvency
On 23 December 2020, amendments to the Latvian Law on the Suppression of Consequences of the Spread of COVID-19 Infection (the “Latvian Covid-19 Law”) that provide for changes to the regulation of insolvency proceedings came into force.
Reimposed suspension of creditors’ right to file for insolvency
Many companies will likely be forced to deal with debts and liquidity issues – one must act smart and promptly to keep the problems from snowballing,
Advice to creditors
Stop the snowballing effect!
Suspension of creditors’ right to file for insolvency
Persons entitled to file an insolvency application and insolvency (IS) proceedings entry criteria:
1) A non-secured creditor or a secured creditor (regarding the non-secured part of the claim), in cases where:
Preconditions for starting an LPP:
1) no liquidation initiated against the debtor;
2) in the previous 5 years, the debtor has not implemented and completed LPP;
1) Debtor prepares OCLPP plan & obtains approval from creditors:
- more than 50% non-secured creditors (total of principal claims);
- at least 2/3 secured creditors (total of principal claims).
Who may not vote (on approval the plan): persons in the same group of companies, shareholders (natural persons) with decisive influence and persons who acquired claims against the debtor from the aforementioned persons within the previous 2 years.
2) Debtor and creditors agree on supervisor's candidate during OCLPP.
The Court of Justice of the European Union (CJEU) has just made a pronouncement on three of the most important matters open to interpretation concerning the regime applicable to financial collateral arrangements under Directive 47/2002 of the European Parliament and of the Council of 6 June 2002.