- INSOL Europe/LexisPSL joint project on the implementation analysis of the Directive (EU) 2019/1023 in the EU Member States—Lithuania
- INSOL Europe/LexisNexis research on implementation of the EU Directive
- Question 1: When did/will the new restructuring law come into force? What is/are the name of the new proceedings which comply with the EU Directive?
- Question 2: Is court approval automatically required? Is court involvement possible during the course of the proceedings? (for eg to rule on short notice on conflicts regarding classes of creditors with voting rights, etc…)
- Question 3: What are the entry criteria (ie must insolvency be proved)? Could you please define the entry criteria under your national legislation?
- Question 4: Can foreign companies use the process?
- Question 5: Does the debtor (ie company's management) remain in possession or is an insolvency practitioner (or any other professional, in that case could you please specify) automatically appointed?
- Question 6: Is there any moratorium on claims to protect the debtor during the process? What is the minimum and maximum length of the stay?
- Question 7: Are creditors placed into classes for voting purposes? How are 'affected creditors' defined under your legislation?
- Question 8: What is the voting threshold to approve the restructuring?
- Question 9: Can shareholders be bound?
- Question 10: How are secured creditors treated?
- Question 11: How are employees treated?
- Question 12: Can certain (holdout) creditors be crammed down? Is the absolute priority rule applied?
- Question 13: Can onerous contracts be disclaimed? Are there any restrictions on ipso facto clauses?
- Question 14: Will the new procedure be listed in Annex A of the EU Recast Regulation on Insolvency 2015/848? If not, how will it be recognised in other countries?
- Question 15: Are new money or other arrangements granted any protection/priority (eg DIP finance)?
- Question 16: How long should the process take (roughly)?
- Question 17: How much is the process likely to cost (roughly)?
Restructuring & Insolvency analysis: This article looks at how Lithuania has implemented Directive (EU) 2019/1023 as part of the Joint Project between INSOL Europe and Lexis®PSL to track implementation. Written by Frank Heemann (INSOL Europe's Country coordinator for Lithuania) of bnt attorneys in CEE.
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