Motieka & Audzevičius dispute resolution and insolvency solution group lawyers have successfully won another dispute against one of the largest banks in the Baltic States and protected the client from filing for bankruptcy. This is a particularly significant victory for a client seeking to initiate a restructuring case.
The bank terminated more than 2.3 million EUR credit agreements and began to actively pursue bankruptcy proceedings in 2018 what became a significant obstacle for the client to carry out his normal activities.
Despite this fact the interests of the client were successfully protected.
Firstly, back in 2018, we managed to convince the court that the bank should be subject to interim protective measures prohibiting any recovery proceedings against the client. These measures are still in force.
Secondly, all bank attempts to file bankruptcy proceedings against the client were unsuccessful. Despite the difficulties in client activities, following our recommendations, the client entered into agreements with a significant proportion of creditors on the provision of assistance. Also we managed to convince the Lithuanian Court of Appeal that the client is viable, solvent and has the opportunity to solve financial challenges. Therefore, the repeated claims of the bank to initiate bankruptcy proceedings against the client were rejected.
We are happy to help another client to save and continue his business.