Our team has defended the interests of the client in the Supreme Court of Lithuania. The appointed administrator of a bankrupt company initiated a case against our client. The administrator claimed that the bankrupt company had made a number of priority payments to the client, even though at the time of these payments the company was already insolvent. The administrator therefore requested these payments to be declared invalid on the grounds that they were made in bad faith and violated the interests of other creditors. The administrator also requested that our client be under an obligation to return the money.
The Court ruled that there was not enough information as to whether the bankrupt company was actually insolvent when the payments were made. Moreover, there was insufficient evidence regarding whether the payments had had any effect on the company’s ability to repay its debts to other creditors too. Thus, the case was returned to the Court of Appeal.