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.

Slovakia: Shareholders and grey eminence – be aware. Piercing the corporate veil when the responsible company bodies disregarded legitimate creditors’ interests and did not take reasonable steps to avoid insolvency or at least to take immediate steps to minimise the losses for creditors was impossible in Slovakia. The lack of legal measures to avoid and penalise such situations required an adequate reaction from the lawmakers. Happily, the responses are coming.

Lithuania: Draft Law on the Insolvency of Legal Entities. In order to consolidate bankruptcy and restructuring processes into a single statute, to combine the bankruptcy and restructuring professions into one, to resolve the issue of self-governance of this combined profession and to clarify the interpretation of the provisions of the bankruptcy and restructuring laws, the Draft Law on the Insolvency of Legal Entities (hereinafter – the Draft) was prepared in Lithuania in 2018.