Successful appeal establishing the right to initiate bankruptcy proceedings

During a case regarding compensation for the damages suffered, we identified arguments to initiate a debtor’s insolvency case. Our client instructed us to initiate the debtor’s bankruptcy proceedings.

However, the court of the first instance refused to accept our application to initiate the bankruptcy proceedings by stating that the client’s claim is being challenged.

The Court of Appeal of Lithuania annulled the ruling by granting our appeal. The court confirmed our arguments that a mere dispute in a court over the right of claim does not negate the right to initiate a debtor’s insolvency case.

The case was returned to the court of first instance and the court accepted the client’s application to initiate the debtor’s insolvency case.