Our team has represented one of the largest Lithuanian beverage producers and a well-known glass manufacturing company in a dispute related to the validity of bank transactions and the validity of several loan agreements and a bond. The case was heard before the Supreme Court of Lithuania.
The case is an unprecedented example of very high value cross-border transactions. Its parties are a currently bankrupt commercial bank and entities related to the bank itself, including foreign companies.
Evaluating validity of a bond, issued by former bank’s shareholders and executives, the Court held that arguments provided by Motieka & Audzevičius are sound and well founded. The Court attested validity of bonds that are executed in a form not prescribed by existing legislation; therefore, interests of the client are legally guarded.
Upon examining the case, the Supreme Court held that a transaction could be stated as a sham transaction only if the parties provide undisputable and indubitable evidence of transaction’s fraudulence. It is very important precedent relating assessing the burden of proof that needs to be provided in civil cases.