02.06.2020 The number of restructuring cases is increasing

Interesting facts about restructuring:

from 1 July 2001 when the Law on the Restructuring of Enterprises became effective up to 31 March 2020, only 520 restructuring processes were initiated in Lithuania;
only 56 out of 520 restructuring processes have been successfully completed;
even 9 out of 520 restructuring processes were started in the first quarter of this year;
compared to the same period in 2019, the number of restructuring processes increased by as much as 80% this year.

The entry into force of the Law on the Insolvency of Legal Persons (LILP) since the beginning of the year, which laid down more favourable restructuring rules, as well as the sudden pandemic which has caused significant inconvenience to many businesses have undoubtedly played a role in such a major change. It is therefore to be expected that the LILP will also contribute to a greater number of successful restructuring processes.

Prepared according to the Authority of Audit, Accounting, Property Valuation and Insolvency Management.

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