Approval of disputed financial claim in the foreign insolvency proceedings

Our Dispute Resolution lawyers have succeeded in approving our client’s financial claim in the debtor’s insolvency proceedings.

The complexity lied in the fact that the debtor – a private individual, tried to escape debts by emigrating from Lithuania to Russia. He then tried to conduct a quick insolvency process without informing foreign creditors about it, we succeeded in challenging that plan.

During the second insolvency proceedings, the debtor tried challenging our client’s claim by attacking the debt’s overall basis, which was already confirmed by Lithuanian courts and recognized by separate earlier judgment in Russia.

The court of first instance ruled in the debtor’s favour but we succeeded in overturning the ruling at the court of appeals. The debtor raised issues such as a creditor being from the “unfriendly state” or an attempt to withdraw foreign currency from Russia but to no avail.