Bankruptcy Law, Restructuring of Enterprises
Lawyers of the law firm provide extensive legal services related to bankruptcy and restructuring of enterprises: prepare applications concerning initiation of bankruptcy proceedings to courts, defend the interests of debtors, creditors and third parties during the meetings of creditors and in the court. We advise bankruptcy administrators on various issues arising in the enterprise bankruptcy or restructuring proceedings, carry out legal audit of transactions concluded by the enterprise, prepare claims for invalidation of such transactions.
We represented a shareholder and a former manager of a legal entity in a civil case concerning compensation of damage inflicted by belated submission of a claim for initiation of bankruptcy proceedings to the court (and subsequently, in proceedings concerning bankruptcy fraud). The dispute was resolved by a settlement agreement, as the bankruptcy administrator agreed to reduce the amount of the claims against the client in more than 11 times.
We represented one of the largest companies operating in the Polish infrastructure and energy construction sector in the civil case concerning the intentional bankruptcy of a former subsidiary. The creditor whose financial claim amounted nearly to EUR 4,000,000 sought for recognition of the bankruptcy of the subsidiary as intentional, alleging, inter alia, that the client, as a shareholder in the bankrupt company, had been unfairly relocated the subsidiary's core business. The court upheld the attorney's position that the bankruptcy of the subsidiary was caused by business failure and not by deliberate poor management and governance of the management bodies or the shareholder. The creditor’s application was rejected.
We represented clients – shareholders of a bankrupt company – in the appellate process in a civil case initiated according to a claim filed by the bankruptcy administrator for damages suffered in the form of uncovered administration costs. The Regional Court that examined the case has noted that the provisions of the Enterprise Bankruptcy Law do not give any guarantees to the administrator that it will in all cases really get the full remuneration fixed for it or that the enterprise or the creditors will compensate in full the administration costs incurred by it. The panel of judges rejected the claimant’s appeal and upheld the judgement of the court of first instance favourable for the clients.
We represented creditor's interests in a civil case on the recognition of a company’s bankruptcy procedure intentional. The district court having heard the client’s application concluded that the company (the debtor) was managed improperly; its shareholders knew or had to know that their decisions reduced the company’s working capital and assets, further deteriorating the already bad financial situation of the company, violating rights and legitimate interests of creditors, also that their decision were in conflict with interests of the company. Moreover, by concluding transactions, shareholders intentionally and deliberately reduced the available liquid assets of the company, which already was insolvent, its financial situation, and the ability of creditors to recover at least a part of debts. The court essentially upheld the client’s application and declared the bankruptcy of the debtor to be intentional.
We represented shareholders and a former manager of a legal entity in a civil case concerning compensation of damage inflicted by belated submission of a claim for initiation of bankruptcy proceedings to the court. The claims of the creditor who initiated the action were rejected.
We represented a company in restructuring in a litigation concerning amendment of the restructuring plan. The Supreme Court of Lithuania upheld the cassation appeal prepared by the lawyers of the firm and stated that the period of the restructuring process must not necessarily coincide with the period of coverage of the debts to the creditors, therefore it upheld the ruling of the first instance court whereby the restructuring plan of the company providing for a period of arrangement of the debts exceeding five years was approved.
We advised a company in restructuring during its restructuring process and assisted it in reaching the objectives of restructuring – to restore long-term solvency of the company and to avoid bankruptcy. The client successfully implemented the restructuring plan and completed the restructuring proceedings.