Recognition of intentional bankruptcy and liability of responsible persons

We successfully represented a bankrupt company in proceedings seeking recognition of intentional bankruptcy and identification of responsible parties. The case required demonstrating that the company’s activities created only a formal appearance of profitability, while in reality, its operations were conducted to secure personal financial gain.

Over the course of more than one and a half years, our Insolvency team carried out an extensive legal, factual, and financial analysis. We prepared comprehensive procedural documents, performed detailed calculations, and mapped decision-making processes and cash flows to uncover the underlying structure of the transactions.

On 3 April 2026, the Lithuanian Court of Appeal overturned the decision of the court of first instance and recognised the bankruptcy as intentional. The court held the former company manager, who had acted in the interests of the majority shareholder, liable for the intentional bankruptcy. Our team established clear links between key decisions, the individuals involved, and cash flows, demonstrating that formally lawful actions had been used to conceal the withdrawal of company assets.

We successfully argued that the assessment of such cases must go beyond formal compliance and take into account the overall substance and outcome of the conduct. The ruling established significant facts and legal presumptions that are now being relied upon in ongoing proceedings before the Vilnius Regional Court, including claims for damages exceeding EUR 5.6 million against the former manager and the recovery of unlawfully paid dividends of EUR 700,000 from the shareholder.

This case highlights our ability to handle complex, multi-layered disputes that demand in-depth analytical and strategic expertise across both legal and financial matters.