Main initiators of bankruptcy processes in QI 2020

01.06.2020 Main initiators of bankruptcy processes in QI 2020

By Associate Partner Žydrūnė Stuglytė 

 

On 1 January 2020, a new Law on Insolvency of Legal Entities came into effect but this did not bring any significant changes in terms of initiators of bankruptcy processes. As in previous years, the State Social Insurance Fund Board and the State Tax Inspectorate were the most active, initiating 40 percent and 25.6 percent of all bankruptcy proceedings, respectively, in QI 2020. Other initiators of bankruptcy processes fall into the following groups: other creditors of a company – 14.6 percent; company heads – 11.2 percent; owners – 6.4 percent; company employees – 2 percent.

Comparison of QI 2020 to a relevant period in 2019 shows that other creditors of a company were more active in initiating bankruptcy processes by 38.7 percent. It shows that creditors are becoming more active in defending their interests in relationship with business partners that face difficulties. It also indicates that company heads should become more active themselves in initiating bankruptcy processes instead of waiting for creditors to apply for initiation of bankruptcy proceedings. Only in this way will company heads avoid imposition of possible liability for late initiation of the company’s bankruptcy process. 

 Karolina Gasparke BW580

Karolina Gasparkė
Senior Associate 
karolina.gasparke@tgsbaltic.com

 

Insolvency Solutions team:

Zydrune Stuglyte bw 2 v2

  Žydrūnė Stuglytė          Associate Partner

Marius Brasiunas bw 2 v2

 Marius Brasiūnas           Associate Partner

Vytis Grybauskas bw 2 v2

 Vytis Grybauskas                   Associate

Agata Zimariovaite BW580

 Agata Zimariovaitė             Junior Associate

Beatrice Stiopinaite BW580

 Beatričė Stiopinaitė            Junior Associate 

Lukas Radzevicius BW580

 Lukas Radzevičius                 Legal Assistant