Litigation concerning the insolvency procedure and the repayment of a loan

Motieka & Audzevičius’ team has represented a defendant, a former major city infrastructure company, in a litigation concerning the insolvency procedure and the repayment of a loan. The claimant, a bank, demanded payment of a debt according to the schedule set out in a restructuring plan of the client. The client considered the debt had already been paid. According to the assignment of the claim contract, which was made as security for the repayment of the loan, the claimant had received a ten times bigger sum before the deadline. Therefore, the client considered the obligation of the dispute already extinguished by a performance.

The case is one of the few concerning the performance of a restructuring plan in the generally scarce and undeveloped Lithuanian case law on this matter.