Official translation
REPUBLIC OF LITHUANIA
ENTERPRISE BANKRUPTCY LAW
20 March 2001 No. IX-216
Vilnius
CHAPTER ONE
GENERAL PROVISIONS
Article 1. Purpose of the Law
2. The Law shall apply to all enterprises, public agencies, banks and credit unions (hereinafter - enterprises), registered in the Republic of Lithuania in the manner laid down by law. The specific features of bankruptcy process of banks, credit unions, insurance companies, agricultural enterprises, intermediaries of public trading in securities, investment companies and other enterprises and institutions may be established by other laws regulating the activities of the said enterprises and public agencies.
3. Provisions of other laws regulating the activities of enterprises, the creditor’s right to the satisfaction of claims, the creditor’s right to take measures to recover debts, taxes and other mandatory payments and the administration thereof in the course of bankruptcy process shall be applied in enterprises to the extent they do not conflict with the provisions of this Law.
Article 2. Definitions
In this Law:
1. “Bankruptcy” means the state of an insolvent enterprise where bankruptcy proceedings have been initiated in court or the creditors are performing extrajudicial bankruptcy procedures in the enterprise.
2. “Bankruptcy process” means the sum total of judicial or extrajudicial enterprise bankruptcy procedures.
3. “Bankruptcy proceedings” means a civil case opened in court over disputes arising from legal relations connected with bankruptcy.
4. “Enterprise in bankruptcy” means an enterprise against which bankruptcy proceedings have been initiated or in respect of which extrajudicial bankruptcy procedures are applied.
5. “Bankrupt enterprise” means an enterprise declared bankrupt by the court or, in case of extrajudicial bankruptcy proceeding, by the resolution of the creditors’ meeting and put into liquidation due to bankruptcy.
6. “Management of assets of an enterprise in bankruptcy or a bankrupt enterprise” means the activities of the administrator: retention of the assets of an enterprise in bankruptcy or bankrupt enterprise, recovery of assets from the debtors, sale of assets, satisfaction of the creditors’ claims, organisation of transfer of the remaining assets.
7. “Creditor's claims secured by pledge and/or mortgage charge” means the right acquired by the creditor/pledgee/mortgage creditor under a contract of pledge or a registered mortgage bond or pledge note to demand, in the event of the enterprise's default to fulfil the obligation secured by pledge and/or mortgage, that the property on which he holds a mortgage charge or a lien be realised in the manner prescribed by this Law and his claims be met from the proceeds or, in the event of failure to realise the secured assets, to transfer the assets into his ownership.
8. “Insolvency of an enterprise” means the state of an enterprise when it fails to settle with the creditor/creditors after the lapse of three month from the deadline prescribed by laws, other legal acts as well as by the agreements between a creditor and the enterprise for the discharge of the obligations of the enterprise, or upon expiry of the said time period after the creditor/creditors demands/demand the discharge of the obligations where the deadline has not been set in the agreement, and the overdue obligations/debts are in excess of over a half of the value of the assets on the enterprise’s balance.
9. “Owner/owners” means the owner/owners of an individual/personal enterprise, a member/members of a general partnership, a general member/general members or a limited member/limited members of a limited partnership, the founder of a state-owned or municipal enterprise, a shareholder/shareholders whose shares carry over 10% of voting rights, a holder/holders of member share, stakeholders in a public agency.
10. “Authorised representative of the shareholders/holders of member shares/ stakeholders” means a person elected by the meeting of shareholders/holders of member shares/stakeholders to represent their interests in bankruptcy process.
11. “Composition with creditors” means agreement between the creditors and the enterprise to continue the activities of the enterprise where the latter assumes certain obligations, whereas the creditors agree to defer the satisfaction of financial claims or to reduce the amount thereof or to waive their claims.
Article 3. Enterprise Creditors
Enterprise creditors (hereinafter - creditors) are legal or natural persons who have the right under law to demand from the enterprise the discharge of liabilities and obligations, including, inter alia:
1) in case of default in payment of taxes, compulsory state social insurance contributions, and compulsory health insurance contributions - state institutions responsible for the collection thereof;
2) in case of debts in the payment of wages and failure to pay the damages arising from employment relationship - the enterprise workers (their heirs);
3) in the event of transfer to the State of the obligation for the payment of damages under the Provisional Law on Damage Compensation in Accident at Work or Occupational Disease Cases - an institution authorised by the Government;
4) in case of outstanding loans obtained on behalf of the State or with the State guarantee - the Ministry of Finance;
Article 4. Grounds for Filing a Petition for Bankruptcy
Persons specified in Article 5 of this Law may file a petition for bankruptcy with the court if at least one of the following conditions is present:
2) the enterprise fails to pay, when due, for the goods received, work performed/ services provided, defaults in the repayment of credits and does not fulfil other obligations assumed under contracts;
3) the enterprise fails to pay, when due, taxes, other compulsory contributions prescribed by law and/or the awarded sums;
4) the enterprise has made a public announcement or notified the creditor /creditors in any other manner of its inability or lack of intent to discharge its obligations;
Article 5. Petition Filed with Court for the Initiation of the Enterprise Bankruptcy Proceedings
The following persons shall have the right to file a petition for the initiation of the enterprise bankruptcy proceedings:
2. Under the condition laid down in Article 7(1) of this Law, the petition for the initiation of bankruptcy proceedings must be filed with court by the liquidator of the enterprise in liquidation.
3. Petitions shall be filed in writing with the county court of the locality in which the registered office of the enterprise is situated in the manner set forth by the Code of Civil Procedure.
Article 6. Petition for Bankruptcy Filed by a Creditor/Creditors
1. In the presence of at least one of the conditions specified in Article 4 (1), (2) or (3), a creditor/creditors may file a petition for bankruptcy not earlier that after the expiry of 3 months measured from the date prescribed by laws, other legal acts, also agreements between creditors and the enterprise, by which date the obligation of the enterprise had to be fulfilled, or upon the expiry of the same time period after a creditor/creditors requested the discharge of the enterprise's obligations, provided that the time period has not been fixed as per agreements. A copy of the notification specified in paragraph 2 of this Article must be attached to the petition.
2. The creditor/creditors must notify the enterprise manager in writing of his/their intention to file a petition for bankruptcy. The notification shall identify the undischarged obligations of the enterprise and shall contain a warning that in case of failure to discharge the above obligations within the time limit specified in the notification, the creditor/creditors will file a petition for the enterprise bankruptcy. The creditor/creditors shall set an at least 30-day period for the discharge of obligations.
3. Where the condition specified in Article 4(5) of this Law is present and the creditor/creditors has filed a petition for bankruptcy within one month from the day the writs of execution were returned, the conditions established in paragraphs 1 and 2 of this Article shall not be applicable.
4. The creditor/creditor must present copies of the petition and of the annexes accompanying the petition to the head of the enterprise administration.
Article 7. Petition for Bankruptcy Filed by the Enterprise Liquidator
If it transpires during the liquidation of the enterprise according to the procedure prescribed by other laws regulating the activities of the enterprise that it will be unable to discharge all its liabilities, the enterprise liquidator must forthwith suspend all payments and within 15 days from the day of establishment of the above state file for initiating the enterprise bankruptcy proceedings. The petition to court shall be accompanied by the lists of enterprise creditors and debtors, including their addresses, sums of liabilities and debts and the dates when payment thereof is due as well as the financial statement for the period from the day the of making of the decision to put the enterprise into liquidation to the day of filing of the petition.
Article 8. Petition for Bankruptcy Filed by the Head of the Enterprise Administration, Owner/Owners
1. If the enterprise is and/or will be unable to settle with the creditor/creditors, and the latter have not filed a petition for bankruptcy to court or if the condition referred to in Article 4 (4) is present, the head of the enterprise administration, the enterprise owner/owners shall file for the initiation of the enterprise bankruptcy proceedings.
2. The reasons for filing by the enterprise of a petition for bankruptcy shall be indicated in the petition. The petition to court shall be accompanied by the lists of enterprise creditors and debtors, indicating their addresses, sums of liabilities and debts and the dates when payment thereof is due as well as the financial statement for the preceding year and the period of the current year prior to the day of filing of the petition and information relating to the proceedings instituted in courts and recoveries without suit, pledged property and other liabilities. Other documents of relevance for the bankruptcy case may also be presented to court.
Article 9. Preparation for Investigation of a Bankruptcy Case in Court
1. Having received the documents specified in Article 6 (4) of this Law, the head of the enterprise administration shall within 5 days from the receipt of the above documents furnish to court lists of creditors and debtors, indicating their addresses, amounts of liabilities and debts, time limits for making settlements, the financial statement for the preceding year and the period of the current year prior to the day of filing of the petition to court by the creditors, information relating to the proceedings instituted in courts and recoveries without suit, pledged assets and other liabilities.
2. Upon the receipt of a petition for bankruptcy, the court may:
1) obligate the owner/owners, board members, head of the administration, chief financier/accountant, the liquidator to submit to the court all documents required for the investigation of the bankruptcy case and to appraise the property of the enterprise;
2) summon before the court the owner/owners, board members, head of the administration, chief financier (accountant) and other executive officers irrespective of the fact on what grounds the employment contracts with them were terminated, provided that they had been dismissed from work within 12 months prior to the day of filing of the petition for bankruptcy and demand that they give written explanations relating to the initiation of bankruptcy proceedings. Appearance before the court of the above persons shall be obligatory and the guarantees established under the Code of Civil Procedure in respect of witnesses shall apply to them;
4) request that the head of the enterprise administration or owner/owners furnish to the court data on the economic and financial position of the enterprise;
3. After the court receives a petition for bankruptcy, provided that decisions have been made by courts and other institutions with regard to the enterprise and writs of execution have been issued based thereon, the assets (funds) of the enterprise under the writs of execution may be attached, however the sale of the assets and/or levying of execution shall be staid. If the court refuses to initiate bankruptcy proceedings against the enterprise, the levying of execution and sale of assets shall be resumed, the civil remedies provided shall be cancelled.
4. The court or the judge shall within one month from the day of receipt of the petition issue an order to institute bankruptcy proceedings or to refuse to grant the petition. For valid reasons the court shall be entitled to extend the period of preparation for the investigation of the bankruptcy case, but for not longer than one month. Where a petition for restructuring is received during the investigation of the petition for bankruptcy and the court order to institute bankruptcy proceedings has not yet been issued, the investigation of the petition for bankruptcy shall be postponed pending the court order to initiate restructuring proceedings or to refuse to grant the petition for restructuring.
5. Bankruptcy proceedings shall be instituted if the court establishes the presence of at least one of the following conditions:
Article 10. Instituting Bankruptcy Proceedings in Court
1. Bankruptcy proceedings shall be instituted and bankruptcy case shall be investigated in court in accordance with the procedure of action proceedings prescribed by the Code of Civil Procedure, save for the exceptions provided for by this Law.
2. Bankruptcy proceedings shall be instituted by the county court of the locality where the registered office of the enterprise is situated.
3. The court shall refuse instituting bankruptcy proceedings if:
1) before the court issues an order to institute bankruptcy proceedings, the enterprise satisfies the claims of the creditor/creditors who filed a petition for bankruptcy;
4. Upon issuing an order to institute bankruptcy proceedings, the court or the judge must:
2) to levy an attachment against the immovable property and other fixed tangible assets of the enterprise, in force until the effective date of the court order to institute bankruptcy proceedings;
3) to give forthwith a written notification of the instituted proceedings to the administrator of the Register of Enterprises and, within a 10-day period from the effective date of the court order to institute bankruptcy proceedings, to: the enterprise, the creditors, all persons who have leased, borrowed, or are keeping in custody or using or managing the enterprise assets on any other grounds, also the Ministry of Finance if the enterprise is the recipient of a loan made on behalf of the State or guaranteed by the State, the tax administrators, compulsory social insurance and compulsory health insurance administrators, credit institutions and insurance companies servicing the enterprise, the founder of the State-owned, municipal enterprise in bankruptcy or the institution representing the enterprise, also the Securities Commission if bankruptcy proceedings are instituted against a public company;
4) notify other courts, in which action for claims, including claims arising from employment relationships, has been brought against the enterprise, of the institution of bankruptcy proceedings and take over investigation of the above cases. Notify the bodies of investigation or courts if associated civil action has been brought in criminal proceedings by the creditors of the enterprise in bankruptcy and take over all documents relating to the above actions for examination. Notify bodies of investigation or courts if in criminal proceedings attachment is levied on the assets of the enterprise in bankruptcy and take over all the documents relating to the attachment on the assets. Notify the bailiff’s offices which have been presented the writs of execution regarding the levying of execution on the enterprise or regarding the levying of attachment on the assets of the enterprise;
5) set a time limit which shall be not shorter than 30 and not longer than 45 days from the effective date of the court order within which the creditors shall have the right to file their claims;
6) set a time limit which shall be not shorter than 15 days from the effective date of the court order to institute enterprise bankruptcy proceedings, within which the enterprise managing bodies must transfer to the administrator the assets of the enterprise according to the financial accounts drawn up based on the data available on the day on which the order to institute bankruptcy proceedings becomes effective, and all the documents;
7) approve the amount of enterprise funds on the basis of an estimate submitted by the administrator which the latter shall be entitled to use to cover the administration costs pending the approval of the estimate of administration expenses. The administrator must submit the estimate within 5 working days from the effective date of the court order to institute bankruptcy proceedings.
5. If the creditor’s civil action is referred, according to the procedure established by the Code of Criminal Procedure, to the court investigating the bankruptcy case, the time limits for the referral of action set in paragraph 4 (5) of this Article shall be deemed to have been observed. The above action by the creditors may be referred by the court order to the court investigating the bankruptcy case during the entire time period of the bankruptcy process until the court issues an order to terminate the bankruptcy case or adopts a decision on the winding up of the enterprise.
6. The court or the judge may direct the enterprise administrator to perform the actions specified in paragraph 4 (3) and (4) of this Article.
7. After the court order to institute bankruptcy proceedings becomes effective:
1) the enterprise managing bodies must transfer to the administrator the assets of the enterprise according to the financial accounts drawn up on the basis of the data as of the day of institution of the enterprise bankruptcy proceedings and all pertinent documents within the time limits set by the court. In the cases where the assets of the enterprise are not separated from the assets of the enterprise owner or those of the members of the enterprise, the owner/owners must within the said time period submit to the administrator the list of all available assets, including the assets which are the object of joint ownership;
2) the enterprise managing bodies shall lose their powers, while the enterprise administrator shall upon a 15-day written advance notice terminate employment contracts with the members of the enterprise board and the head of the administration. The said individuals shall not be entitled to severance pay or compensation, except for monetary compensation for the unused holidays. Upon the court order, the above persons and the chief financier (accountant) must present, in the course of the bankruptcy process, all information required for the bankruptcy process;
3) discharge of financial obligations not met prior to the institution of bankruptcy proceedings, including payment of interest, default interest, taxes and other mandatory payments, also recovery of debts from the enterprise through court or without suit shall be prohibited. Computation of default interest and interest on all obligations of the enterprise, including on default in payments related to employment relationship, shall be suspended;
4) if the administrator does not notify the interested parties within 30 days from the effective date of the court order to initiate bankruptcy proceedings that he will not implement the unexpired contracts entered into by the enterprise, the said contracts (including contracts of lease, loan for use agreements), except for employment contracts and contracts from which claims of the enterprise in bankruptcy arise, shall be deemed to have expired, and claims arising by reason thereof shall be met in the manner specified by Article 35 of this Law;
5) the enterprise shall be entitled to engage in economic-commercial activities, provided it reduces creditor losses incurred by reason of bankruptcy, and shall also have the right to use the income received from the above activities to cover expenses related to the activities. Where taxable objects provided for by tax laws and laws on other mandatory payments are created by the enterprise's economic-commercial activities, the enterprise shall pay taxes and other mandatory payments in compliance with laws. Where claims relating to undischarged obligations and commitments emerge as a result of the above economic-commercial activities, they shall be met in accordance with the procedure specified by a 35 of this Law;
6) upon a motion by the creditors the court may impose restrictions on the enterprise's economic-commercial activities and disposal of its assets, which may be sold, leased, or pledged, also used as a collateral or a guarantee for the discharge of other entities' obligations, or may be otherwise transferred (conveyed) only by leave of the court;
8. If a separate appeal is lodged to the court of appeals against the decision to institute bankruptcy proceedings, appoint, temporarily substitute for or dismiss the administrator, the court must examine the appeal within two weeks. The decision of the court of appeals shall be final and not subject to appeal by cassation.
9. The court shall have the right to accept creditors’ claims filed not within the time limits set paragraph 4 (5) of this Article provided the court recognises the reasons for not observing the set time limit as valid. The creditors’ petitions lodged after the time limit set in paragraph 4 (5) of this Article for the recognition of claims which emerged prior to the institution of bankruptcy proceedings shall be accepted only until the day the court issues an order to terminate the bankruptcy proceedings or to liquidate the enterprise due to bankruptcy.
Article 11. Enterprise Administrator
1. The enterprise administrator (hereinafter - the administrator) shall be a natural or legal person appointed by the court, entitled to provide bankruptcy administration services.
2. When filing to court a petition for enterprise bankruptcy, a person may nominate a candidate to the post of the administrator. Persons listed in Article 5 (1) of this Law shall also have the right to nominate their candidates to the administrator's post. The court shall also have the right to appoint to the administrator’s post another persons meeting the requirements of this Article. If no candidate is nominated to the post of the administrator by the person who filed the petition for bankruptcy or by other persons listed in Article 5 (1) of this Law, the administrator must be selected by the court.
3. The administrator shall:
1) submit the documents and information relating to the enterprise in bankruptcy to the administrator of the Register of Enterprises;
2) transmit to the institution authorised by the Government the information relating to the enterprise in bankruptcy and data to be published in the information supplement “Informaciniai pranešimai” of the publication "Valstybės žinios" (Official Gazette);
3) manage, use the assets of the enterprise in bankruptcy in the manner prescribed by this Law and dispose thereof and also of the enterprise funds kept with the banks;
5) open a separate bank account for the accumulation of funds in the course of the bankruptcy process and for effecting settlements with creditors in the manner set forth in this Law. The bank account shall be opened following the order issued by the court to institute bankruptcy proceedings or the resolution adopted by the creditors’ meeting to open extrajudicial bankruptcy proceeding;
7) enter into contracts of limited duration for the lease of the enterprise assets, in which the day of expiry of the contract of lease must be the day of sale, transfer or return of the assets;
8) examine the contracts of the enterprise in bankruptcy entered into within an at least 36 months period before the initiation of bankruptcy proceedings and bring actions for the invalidation of the contracts which are contrary to the objectives of the enterprise activities and/or which could have led to the disability of the enterprise to settle with creditors. In this case the administrator should be considered to have found out about the contracts from the effective date of the court order to institute bankruptcy proceedings;
9) represent or authorise another persons to represent the enterprise in bankruptcy in the court, creditors' meeting, and in entering into contracts if the enterprise in bankruptcy continues its economic- commercial activities;
10) compile the list of all enterprise creditors and their claims on the basis of claims filed by the creditors, which have been revised according to the financial accounting documents of the enterprise, and submit the list to the court for approval, also contest unproven claims of creditors at the creditors' meeting and in the court;
11) hire and dismiss workers according to the procedure laid down in the Law on Employment Contract;
12) submit documents to the Fund for the Satisfaction of Claims of Workers of Enterprises in Bankruptcy or Bankrupt Enterprises Arising out of their Employment Relationships or to the Guarantee Fund for the allocation of resources for the satisfaction of the workers’ claims arising out of their employment relationships;
13) in the period until the first meeting of creditors, decide on the further fulfilment by the enterprise of the contract which has not yet expired, and on entering into new contracts necessary for the enterprise in order to continue its economic-commercial activities, provided that the enterprise continues its economic-commercial activities, and shall within 30 days from the day the decision of the court to institute bankruptcy proceedings becomes effective give notice to the interested parties of his intent or refusal to fulfil the contracts entered into by the enterprise;
14) protect the rights and interests of all creditors, also the rights and interests of the enterprise in bankruptcy and carry out the necessary work relating to bankruptcy ;
15) furnish information to the institution authorised by the Government and to the Department of Statistics under the Government of the Republic of Lithuania (according to the forms of reporting prescribed by the Department), the court, also, in accordance with the procedure established by the creditors’ meeting, to the creditors, the owner/owners and the authorised representative of shareholders/holders of member shares, if one has been appointed;
16) organise and control the accounting of income received in the process of management or use of the enterprise's assets or disposal thereof, also accounting of costs;
18) notify the owner/owners of the enterprise, the authorised representative of the shareholders/holders of member shares, if one has been appointed, where the decisions of the above persons are required in order to conclude the arrangement with the creditors,;
19) where the assets of the enterprise are not separated from the enterprise owner’s or partners’ assets, be entitled to receive, free of charge, from the institutions registering property/securities according to the procedure established by laws information relating to the property/securities registered in the name of the said persons and from the banks, other credit institutions and insurance companies - information relating to the funds kept or receivable by the said persons;
21) submit documents relating to the discharge of the obligation of payment for damage resulting from accident at work or occupational disease and particulars of the recipients of compensation for damage to the local authorities of their place of residence where, in the cases provided for by law, the payment of compensation for damage is assigned to the State;
22) present documents relating to the allocation of funds for meeting payment claims of natural and legal persons for the agricultural produce purchased for processing to the Fund for Payment in Satisfaction of Claims of Natural and Legal Persons for Agricultural Produce Purchased for Processing by Enterprises in Bankruptcy and Bankrupt Enterprises;
4. A creditor (a person who is in employment relationship with the creditor or a member of the latter's managing bodies) of the enterprise against which bankruptcy proceedings have been instituted, a person who under laws or other legal acts has no right to be appointed head of the administration, the owner of the enterprise or of the parent or subsidiary company of the enterprise, a member of the Supervisory Board or the Board of the enterprise or the head of the e administration, his deputies/directors, chief financier/accountant, a shareholder who owns over 10% of shares of the enterprise in bankruptcy or of the parent or subsidiary company of the enterprise may not be appointed administrator. The above restrictions shall also apply to persons referred to in this paragraph, who were employed at the enterprise in bankruptcy and dismissed within 12 months immediately preceding the initiation of bankruptcy proceedings.
5. The creditors’ meeting shall authorise the chairman of the creditors’ meeting to conclude a contract of agency with the administrator in the name of the enterprise.
6. The administrator must compensate, according to the procedure established by laws, all losses inflicted through his fault.
7. The decision concerning temporary substitution for the administrator in case of his holidays or temporary disability or in other cases when he is temporarily unable to discharge his functions shall be adopted by the court on the motion of the creditors' meeting and subject to the approval of the chairman of the creditors’ meeting. If the administrator is unable to apply to the court due do illness, the decision concerning his temporary substitution in case of his temporary disability shall be adopted by the court on the motion of the chairman of the creditors’ meeting.
8. The administrator may be removed from office by the court. The administrator shall also have the right to hand in his resignation to the court.
9. Upon accepting the administrator’s resignation, the court shall appoint another person to the post of administrator and specify the time limit within which the previous administrator must transfer the assets of the enterprise according to financial accounts drawn up on the basis of the data as of the day of resignation and all the documents to the newly-appointed administrator.
Article 12. Preparation for Extrajudicial Bankruptcy Process
1. Bankruptcy procedures may be applied out of court, provided that no action has been brought in court in which claims, including claims connected with employment relationships, have been entered against the enterprise, also if no execution is levied on the enterprise under the writs of execution issued by the courts or other institutions.
2. If the enterprise is unable and will not be able to settle with a creditor/creditors, the head of the enterprise administration, the owner/owners, intending to seek the creditors’ consent to carry out bankruptcy procedures out of court, must notify every creditor in writing of the motion to implement extrajudicial bankruptcy procedures, at the same time indicating the date and place of the creditors’ meeting.
3. The creditors’ meeting shall be convened within 20 days from the day a notice of the motion specified in paragraph 2 of this Article was sent to the creditors.
4. The decision to carry out extrajudicial bankruptcy procedures may be adopted by the creditors’ meeting if the decision is voted in favour of by the creditors whose claims in terms of value account for at least 4/5 of the amount of the enterprise's liabilities on the day of adoption of the resolution, including those which have not yet matured.
5. If the creditors’ meeting rejects the decision to carry out extrajudicial procedures, the persons listed in Article 5(1) of this Law may file to court a petition for bankruptcy. In this case the time limits for the filing of the petition set in Article 6(1) of this Law shall not be observed and provisions of paragraph 2 of this Article shall not apply.
Article 13. Extrajudicial Bankruptcy Process
1. Extrajudicial bankruptcy procedures shall be carried out in compliance with this Law. The issues within the competence of the court shall be considered and decided by the creditors' meeting.
2. The administrator shall be appointed by the creditors' meeting in accordance with the provisions of Article 11 of this Law.
3. The procedure for implementing the resolutions of the creditors' meeting and for satisfying the creditors’ claims shall be established in accordance with the procedure and terms and conditions of court investigation of bankruptcy cases prescribed by this Law.
4. After the opening of extrajudicial enterprise bankruptcy process the administrator must within 15 days from the day of the creditors’ meeting at which the creditors decided to carry out bankruptcy procedures out of court warn the enterprise workers in writing that employment contract with them shall be terminated in compliance with the Law on Employment Contract and notify thereof the territorial labour exchange and the local authority.
CHAPTER FIVE
PROTECTION OF THE INTERESTS OF THE DEBTOR, CREDITORS AND THIRD PARTIES WHERE BANKRUPTCY PROCEEDINGS HAVE BEEN INSTITUTED
Article 14. Disposal of the Assets of the Enterprise in Bankruptcy
1. From the day the order to initiate of bankruptcy proceedings becomes effective:
1) the right to manage, use and dispose of the assets/funds of the enterprise in bankruptcy shall be granted only to the administrator. No creditor of the enterprise shall have the right to take over the property and funds owned by the enterprise otherwise than prescribed by this Law;
2. All contracts entered into in breach of provisions of paragraph 1 of this Article shall be invalid as of their conclusion.
Article 15. Satisfaction of Claims Filed with the Courts prior to the Initiation of Bankruptcy Proceedings
1. The head of the administration of the enterprise must within 5 days from the day of receipt of the documents referred to in Article 6(4) notify the court of the instituted proceedings in which property claims, including financial claims arising from employment relationships, have been filed against the enterprise as well as of the criminal proceedings in which property claims have been filed against the enterprise and/or an attachment has been levied on the assets of the enterprise.
2. All civil cases in which claims, including claims relating to employment relationships, have been filed against the enterprise shall be referred to the court which initiated bankruptcy proceedings.
3. The administrator or the person authorised by him shall represent the enterprise in the proceedings for the recovery of property from other persons for the benefit of the enterprise in bankruptcy, instituted prior to the opening of bankruptcy proceedings from the effective date of the order to institute bankruptcy proceedings.
Article 16. Schedule of Payments
All debts of the enterprise in bankruptcy shall be considered overdue as from the day of the initiation of bankruptcy proceedings. The provision shall become invalid when the court order to terminate bankruptcy proceedings becomes effective.
Article 17. Discharge of Obligations of and to an Enterprise in Bankruptcy
1. The administrator may continue, according to the procedure and in the cases specified by this Law, the contracts entered into by the enterprise in bankruptcy prior to the institution of bankruptcy proceedings.
Article 18. Delivery of Writs of Attachment and of Writs of Execution
1. The bailiff shall, within 15 days after the effective date of the court order to initiate bankruptcy proceedings deliver to the court investigating the bankruptcy case writs of attachment to be levied on the enterprise's property which has been attached prior to the institution of bankruptcy proceedings in order to enforce the decisions adopted by the courts and other institutions but not yet sold as well as writs of execution to be levied on the enterprise and shall notify the property trustee and the claimant thereof. The creditors’ claims against the enterprise which have not been met by the bailiffs’ office shall be met according to the procedure laid down by this Law.
2. If the property of the enterprise against which bankruptcy proceedings have been instituted is attached in criminal proceedings, all documents relating to the attachment of the property shall be transmitted to the court investigating the bankruptcy case within one month from the effective date of the court order to institute bankruptcy proceedings and the property trustee shall be notified thereof.
3. The issues relating to attachment of property as specified in paragraphs 1 and 2 of this Article shall be resolved by the court investigating the bankruptcy case. Pending the lifting of attachment, the property trustee shall have all the rights and duties related to the protection of the property.
Article 19. Regulation of Employment Relationships
1. Upon the institution of bankruptcy proceedings against the enterprise the administrator must within 15 days after the effective date of the court order to institute bankruptcy proceedings give the workers of the enterprise a written notice of the termination of employment contracts with them in compliance with the Law on Employment Contract and notify the territorial labour exchange and municipal authorities thereof.
Article 20. Fraudulent Bankruptcy
If the court investigating the enterprise bankruptcy case establishes a fraudulent bankruptcy, the administrator must review all contracts of the enterprise in bankruptcy concluded within the 5-year period prior to the institution of bankruptcy proceedings and bring an action before the court investigating the enterprise bankruptcy case for the invalidation of the contracts which are contrary to the interests of the enterprise and/or which could have contributed to its loss of ability to settle with the creditors. In this case the administrator shall be deemed to have learnt of the contracts from the order to initiate bankruptcy proceedings became effective.
Article 21. Rights of Creditors in Bankruptcy Proceedings
1. Upon the initiation of bankruptcy proceedings the creditors shall have the right to:
1) refer their claims to the administrator within the time limit fixed by the court, attaching thereto proof of claim verified by documents, also specify the guarantees for the satisfaction of the above claims provided by the enterprise;
2) apply to the court for the establishment of a fraudulent bankruptcy and question the resolutions adopted by the creditors’ meeting;
Article 22. Convening the Creditors' Meeting
1. The first meeting of the creditors shall be convened not later than within 15 days after the effective date of the court order to allow the claims of the creditors.
2. Upon the institution of bankruptcy proceedings the first meeting of the creditors shall be convened by the court or, on its direction, by the administrator.
3. Subsequent meetings of the creditors shall be convened by the court, the administrator or the chairman of the creditors' meeting. A creditor/creditors, the sum total of whose claims in terms of value accounts for at least 10% of the sum total of all creditors' claims allowed by the court in the manner prescribed by this Law shall be entitled to request convening the creditors’ meeting.
4. The procedure for convening the creditors’ meeting shall be established by the creditors’ meeting.
5. The administrator shall present to the creditors' meeting the court order to allow each creditor’s claim.
6. The owner (owners) of the enterprise in bankruptcy or his representative, the administrator, the representative of the founder of the state-owned or municipal enterprise, the authorised representative of shareholders/holders of member shares shall have the right to attend the creditors’ meetings. Only creditors shall have the right to vote.
Article 23. The Rights of the Creditors' Meeting
The creditors' meeting shall have the following rights:
2) to decide on the formation of the creditors' committee, elect the committee, change its composition, delegate to the committee all or part of the rights of the creditors' meeting;
4) to request that the administrator present reports about his activities and to approve said reports. If the administrator's report is not approved by the creditors' meeting, it may be approved by the court;
5) to approve the estimate of administration expenses, also change the estimate, establish the priority and procedure of covering the expenses;
6) to decide on the continuity, restriction or termination of economic-commercial activities of the enterprise, submit motions to the court on the restriction or termination of commercial-economic activities as well as on the imposition of restrictions on the disposal of the enterprise property;
9) to authorise the chairman of the creditors’ meeting to conclude a contract of agency with the administrator within 10 working days from the day of the creditors’ meeting and apply to the court for the replacement of the administrator during his temporary disability if the administrator is prevented to do so himself by sickness;
10) to establish the manner whereby the creditors, enterprise owner/owners, the authorised representative of the shareholders/holders of member shares receive from the administrator information about the course of the enterprise bankruptcy proceedings;
13) elect a person to chair the creditors’ meeting if the chairman of the creditors’ meeting is not present at the meeting;
15) in case extrajudicial enterprise bankruptcy procedures are applied, to adopt resolutions which would be adopted by the court in judicial investigation of bankruptcy;
Article 24. Procedure for Adopting Resolutions of the Creditors' Meeting
1. A resolution of the creditors' meeting shall be deemed adopted if voted in favour of by open ballot by the creditors whose amount of claims allowed by the court (in case of extra-judicial bankruptcy process - by the creditors’ meeting) accounts for over one half of the amount of the allowed claims of all creditors, save for the exceptions prescribed by this Law. The creditors’ claims allowed by the court (in case of extra-judicial bankruptcy process- by the creditors’ meeting) and the sum thereof must be reduced by the amount of sums paid out prior to the meeting. A creditor shall have the right to notify the creditors' meeting in writing of his opinion -whether "for" or "against" - regarding each resolution. The opinions shall be included in the voting results of the creditors' meeting, the repeat meeting including, and must be announced at the creditors' meeting.
2. If the number of votes at the meeting proves insufficient for adopting a resolution, the administrator shall within 15 days convene a repeat meeting of the creditors. The repeat meeting shall have the right to adopt resolutions only subject to the agenda of the preceding meeting, except for the resolutions regarding the extrajudicial enterprise bankruptcy process and the arrangement with the creditors.
3. A resolution shall be deemed adopted at the repeat meeting of creditors if voted in favour of by open ballot by creditors whose amount of claims allowed by the court accounts for over one half of the amount of the allowed claims of the creditors attending the meeting.
4. The resolutions of the creditors' meeting shall be binding on all the creditors. Where bankruptcy proceedings have been instituted in the court, the chairman of the creditors' meeting must within 5 working days after the adoption of the resolution submit a copy of the minutes of the creditors’ meeting to the court investigating the bankruptcy case.
Article 25. The Creditors' Committee
1. The creditors' committee may be elected by the first or by the subsequent meetings of the creditors. The chairman of the creditors' meeting shall also be the chairman of the creditors' committee. Among its members the creditors' committee must have at least one person authorised to defend the claims arising from employment relationships if the enterprise is to satisfy the claims arising from employment relationships, claims for the compensation for damage caused by grievous bodily harm or other injury, occupational disease or death in accident at work. The creditors' committee must have at least 5 members.
2. The creditors' committee shall monitor the course of bankruptcy, the administrator's activities, shall protect the creditors' interests in the periods between the creditors' meetings.
4. The resolutions of the creditors' committee shall be valid if the committee meeting is attended by over one half of the committee members. One member of the creditors’ committee shall have one vote. The creditors' committee shall adopt resolutions by simple majority vote and in the case of a tie the chairman’s vote shall be casting. The creditors' committee must notify all creditors of the adopted resolutions in the manner laid down by the creditors' meeting. If bankruptcy proceedings are instituted in court, the chairman of the creditors’ meeting must within 5 working days after the adoption of the resolution submit a copy of the minutes of the meeting of the creditors’ committee to the court.
Article 26. Allowing the Creditors' Claims
1. The creditors' claims shall be allowed by the court. Modifications of the list of the creditors and their claims made in connection with the bankruptcy process - unpaid taxes or other compulsory payments, also sums due to the workers made redundant- shall be confirmed by the court order, until the court issues an order to terminate bankruptcy proceedings or adopts a decision on the winding up of the enterprise.
2. The creditors shall be entitled to the general or limited waiver of their claims. A creditor shall notify the court of his waiver of claims in writing. The court shall accept the waiver of claims by issuing an order, reduce the amount of the creditors' claims accordingly and, in case of a creditor's general waiver, strike him off the list of creditors.
Article 27. Discontinuation of a Bankruptcy Case
1. A bankruptcy case shall be discontinued when:
2) the enterprise in bankruptcy effects settlement with all the creditors/creditor and the administrator files documents in proof thereof with the court;
2. Where a bankruptcy case is discontinued pursuant to the provisions of paragraph 1 (1) and (3) of this Article, the requirements laid down in the Law on Monitoring of State Aid Granted to Undertakings must be complied with.
Article 28. Concluding the Arrangement with the Creditors
1. The motion to conclude the arrangement with the creditors may be filed by the creditors, the administrator, the enterprise owner/owners.
2. The arrangement with the creditors shall be signed by all the creditors whose claims have not been met in the course of bankruptcy before the day the arrangement with the creditors is signed, or by their authorised representative and the administrator, subject to the written consent of the enterprise owner/owners, the managing body which has the right to take a decision to liquidate or reorganise the enterprise.
Article 29. Contents of the Arrangement with the Creditors and the Procedure of Approval thereof
1. The arrangement with the creditors shall specify the following:
2. The arrangement with the creditors shall be subject to approval by the court. If bankruptcy proceedings are instituted against a public or a private company, the court shall name the person whom it charges to convene the creditors’ meeting in its order to approve the arrangement with the creditors.
3. The court shall refuse to approve the arrangement with the creditors if actions provided for therein contradict the laws or infringe somebody’s rights and interests protected under law.
4. The arrangement with the creditors shall come into force on the effective date of the court order to approve the arrangement.
5. After the effective date of the court order to approve the arrangement with the creditors the bankruptcy case against the enterprise shall be discontinued.
6. In case of extrajudicial bankruptcy process, the arrangement with the creditors shall be subject to notarial verification.
7. If the enterprise registration data is changed in the course of bankruptcy process before the day of signing of the arrangement with the creditors, the changes must be recorded in the Register of Enterprises of the Republic of Lithuania within one month from the effective date of of the court order to approve the arrangement with the creditors.
8. After the court order to approve the arrangement with the creditors has become effetcive, the administrator shall within 5 working days give a written notice thereof to the credit institutions servicing the enterprise, to tax, compulsory social insurance and compulsory health insurance administrators, the founder of a state-owned or municipal enterprise, the administrator of the Register who registered the enterprise, the Ministry of Finance if the enterprise has been given a foreign loan on behalf of the State or with the State guarantee, also the Securities Commission if the arrangement with the creditors has been concluded with a public company, and shall also communicate the data relating to the bankrupt enterprise to the institution authorised by the Government and publish the data in the information supplement “Informaciniai pranešimai” of the publication "Valstybės žinios" (Official Gazette) -.
Article 30. Declaring an Enterprise Bankrupt
1. Having investigated the bankruptcy case and declared the enterprise bankrupt, the court shall issue an order to put the enterprise into liquidation as a result of bankruptcy.
2. The court shall declare the enterprise bankrupt and issue an order to put the enterprise into liquidation if an order to conclude the arrangement with the creditors is not issued within 3 months from the effective date of the order to allow the creditors claims and the court has not granted any extension of the deadline. The court may grant the extension of the deadline only if so requested by the creditors’ meeting.
3. Having declared the enterprise bankrupt and issued an order to put the enterprise into liquidation, the court shall approve the amount of each creditor’s claims, the procedure of liquidation, other orders and directions necessary for carrying out the liquidation.
Article 31. The Rights and Duties of the Administrator in Enterprise Liquidation
When carrying out the enterprise liquidation, administrator shall:
2) organise the sale of the assets according to the procedure prescribed by this Law and sell or transfer the assets to the creditors;
4) submit documents relating to the discharge of the obligation of payment for damage resulting from accident at work or occupational disease as well as information relating to the recipients of the compensation for damage to the local authorities of their place of residence where, in the cases provided for by law, the payment of compensation for damage is transferred to the State;
5) manage and dispose of the waste hazardous to the population and the environment in the manner prescribed by law;
6) return the assets remaining after effecting settlement with the creditors to the owner/owners of the bankrupt enterprise, the founder of a state-owned or municipal enterprise or its managing body entitled to decide on the reorganisation or liquidation of the enterprise;
7) hand over to the archive, in the manner prescribed by law, the documents of the enterprise which are subject to keeping;
8) file with the court the liquidation balance sheet and the statements of return, writing off or transfer of the remaining assets;
Article 32. Liquidation of a Bankrupt Enterprise
1. An enterprise shall acquire the status of the enterprise in liquidation from the effective date of the court order to liquidate the enterprise due to bankruptcy.
2. The administrator must no later than within 5 days after the effective date of the court order to liquidate the enterprise due to bankruptcy communicate the information relating to the bankrupt enterprise to the institution authorised by the Government and publish the information in the information supplement “Informaciniai pranešimai” of the publication "Valstybės žinios" (Official Gazette), communicate the information to the administrator of the Register of Enterprises, give notice of the issued order to the owner/owners of the bankrupt enterprise, the founder state-owned or municipal enterprise, the authorised representative of the shareholders/holders of member shares, if one has been appointed, the credit institutions which service the enterprise, tax, compulsory social insurance and compulsory health insurance administrators, the Ministry of Finance if the enterprise is the recipient of a loan made on behalf of the State or with the State guarantee, the labour exchange as well as the Securities Commission if a public company is in liquidation.
3. A bankrupt enterprise may be removed from the Register not earlier than 1 month after the effective date of the court order to liquidate the enterprise due to bankruptcy.
4. After the administrator has filed the documents specified in Article 31(8) of this Law and the certificate issued by the Regional Department of the Ministry of Environment, the court investigating the enterprise bankruptcy case shall hand down a decision on the winding up of the enterprise.
5. The administrator shall within 5 days after the effective date of the court decision regarding the winding up of the enterprise or from the date of the adoption by the creditors’ meeting of the resolution on the winding up of the enterprise file a petition with the administrator of the Register of Enterprises for the removal of the enterprise liquidated due to bankruptcy from the Register. The administrator shall attach to the petition the court decision regarding the winding up of the enterprise or the resolution of the creditors’ meeting on the winding up of the enterprise, the certificate of the enterprise registration and the original copy of the Articles of Association of the enterprise, a certificate attesting that the documents have been submitted to the archive for keeping, and the note issued by the police commissariat attesting that the seal of the enterprise has been destroyed and shall indicate the addresses of the banks and other credit institutions which provide services to the enterprise.
6. The administrator of the Register of Enterprises shall remove the enterprise from the Register within 10 days from the receipt of the court decision regarding the winding up of the enterprise and shall within 5 days from its removal from the Register notify thereof the tax, compulsory social insurance and compulsory health insurance administrators as well as banks and other credit institutions which use to provide services to the enterprise.
CHAPTER EIGHT
THE PROCEDURE OF SALE OF THE ENTERPRISE ASSETS AND SATISFACTION OF CREDITORS’ CLAIMS IN THE COURSE OF BANKRUPTCY
Article 33. Sale of Assets
1. The assets of an enterprise in bankruptcy or a bankrupt enterprise, and the rights of claim under the debtors’ obligations to the enterprise in bankruptcy or bankrupt enterprise shall be appraised and sold in the manner specified by this Law. Immovable property shall be sold by auction according to the procedure established by the Government. The procedure of sale of other assets, except the pledged assets, shall be decided by the creditors. Unsold assets may be transferred to the creditors. The contract of sale of assets or the statement for the transfer of assets shall be deemed equivalent to a contract verified by a notary and, registering the contract of sale in the established manner, shall be considered as documents proving the right of ownership to the assets.
2. The shares and other securities of companies held by the enterprise in bankruptcy or bankrupt enterprise shall be sold in accordance with the procedure laid down by legal acts regulating trading in securities, except for shares of private companies, which shall be sold in the manner established by the creditors’ meeting. The shareholders of a private company the shares of which are offered for sale shall have the right of pre-emption. The shares shall be sold to the highest bidder.
3. Pledged assets shall be sold by auction according to the procedure established by the Government, upon notifying the pledgee, the mortgage creditor thereof. When the administrator transfers the unsold pledged assets to the pledgee, the mortgage creditor, the said persons shall within 30 days from the day of transfer of the assets defray the expenses of asset administration incurred by the administrator, which have been provided for in the estimate of administration expenses approved by the creditors’ meeting.
4. The creditors whose claims have not been satisfied due to the insufficiency of funds shall decide on the use of the unsold assets. If not all property of the bankrupt enterprise has been sold or transferred to the creditors and not all claims of the creditors have been satisfied within 24 months from the effective date of the court order to declare the enterprise bankrupt, the liquidation procedure shall be considered completed. The remaining unsold property which has not been taken over by the creditors shall be written off as unsaleable assets upon the decision of the creditors whose claims have not been satisfied due to insufficiency of funds. The property which has been written off - except for the immovable property - shall be used or destroyed in the manner established by the creditors’ meeting. The immovable property which has been written off shall be transferred without payment to the municipality in whose territory the immovable property is located within 30 days from the date of its having been written off.
5. Radioactive substances, equipment using radioactive substances and generators of ionising radiation may be sold or transferred only in accordance with the procedure established by the laws on radiation protection and other legal acts regulating radioactive protection of the population and the environment.
Article 34. Satisfying the Creditor’s Claims Secured by Pledge and/or Mortgage
The creditor’s claims secured by pledge and/or mortgage shall be paid first of all from the proceeds obtained from the sale of the pledged assets of the enterprise or by transferring the pledged assets. Where the pledged assets are sold at a price higher than the amount of claims secured by the pledge and/or mortgage, the remaining balance of the funds shall be allotted for meeting the claims of other creditors pursuant to Article 35 of this Law.
Article 35. Sequence and Procedure of Satisfying the Creditors' Claims
1. The creditors’ claims shall be satisfied in two stages. During the first stage the creditors’ claims shall be satisfied in the sequence established under this Article, not including the computed interest and default interest, while in the second stage the remaining part of the creditors’ claims (interest, default interest) shall be paid in the same sequence.
2. First in line for satisfaction shall stand claims of the workers arising from employment relationships; claims for compensation for damage caused by grievous bodily harm or some other injury, an occupational disease or death due to an accident at work; claims of natural or legal persons for payment for agricultural produce purchased for processing.
3. Second in line for satisfaction shall stand claims for payment of taxes and other payments into the budget, also for compulsory state social insurance contributions and compulsory health insurance contributions; claims relating to loans obtained on behalf of the State or guaranteed by the State;
5. The computed income tax payable on the wages of natural persons may not be considered as ranking equal with the claims standing first in line for satisfaction.
6. Claims of the creditors of each successive sequence shall be met after full payment of the claims of the creditors of the preceding sequence. If assets are insufficient to satisfy all of claims of one sequence in full, the said claims shall be paid in proportion to the amount due to each creditor.
7. Claims connected with employment relationships which have been put forward by workers of an enterprise in bankruptcy or a bankrupt enterprise, referred to in paragraph 2 of this Article, may be met from the resources of the Fund for the Satisfaction of Claims of Workers of Enterprises in Bankruptcy or Bankrupt Enterprises Arising out of their Employment Relationships and from the resources of the Guarantee Fund, whereas claims of natural and legal persons for payment for agricultural produce purchased for processing by enterprises in bankruptcy or bankrupt enterprises may be paid from the resources of the Fund for Payment of Claims of Natural and Legal Persons for Agricultural Produce Purchased for Processing by Enterprises in Bankruptcy and Bankrupt Enterprises. The allowed claims of a worker or a natural or legal person shall be reduced by the amount of the sum paid from the above Funds.
Article 36. Administration Expenses
1. Administration expenses shall be paid with all types of funds (proceeds from the sale of assets of the enterprise, including pledged assets, debts repaid to the enterprise, earnings from economic activities, rent for leased assets and other funds received in the course of bankruptcy).
2. The estimate of administration expenses shall be drawn up, approved and changed by the creditors’ meeting which shall also establish the procedure of disposal of the administration expenses.
3. Administration expenses shall comprise remuneration for the work of the administrator, other workers of the enterprise whose participation in the bankruptcy process is necessary, except for those participating in the economic-commercial activities of the enterprise, amounts paid in connection with employment relationships, auditing expenses, approved expenses related to property appraisal and sale, also to surveillance, management and disposal of hazardous waste as well ass other expenses approved by the creditors’ meeting. Expenses related to economic-commercial activities may not be included in the administration expenses.
4. The first meeting of the creditors must fix the amount of remuneration to be paid to the administrator for the administration of the enterprise during the bankruptcy process, including the period from the effective date of the court order to institute enterprise bankruptcy proceedings until the day the contract of agency is concluded with him or the day of the first meeting of the creditors.
5. The sum of the remuneration payable to the administrator (depending on whether or not the enterprise in bankruptcy continues its business, the type and amount of the enterprise assets being sold, also the complexity and number of proceedings instituted and civil actions brought against the enterprise) and the procedure of payment of the remuneration (the remuneration may be paid in a lump sum after the completion of the bankruptcy process or by instalments in the course of the proceedings) shall be established in the contract of agency.
Article 43. Entry into Force of the Law
2. The Law of the Republic of Lithuania on Enterprise Bankruptcy (Valstybės žinios, 1997, No. 64-1500; 1998, No. 109-2996; No. 114-3189; 2000, No. 32-889) shall be in force and regulate bankruptcy procedures only in respect of those enterprise against which bankruptcy proceedings have been instituted or extrajudicial bankruptcy process has been initiated prior to the entry into force of this Law.
3. The procedure set forth in this Law shall also apply to the investigation of bankruptcy cases against the enterprises, which, prior to the entry into force of this Law, were subject to extrajudicial bankruptcy process, but the cases whereof shall, on the decision of the creditors’ meeting be referred to the court for investigation after 1 July 2001,.
4. Administration expenses of enterprises, bankruptcy proceedings whereof were instituted prior to 1 July 2001, may be revised only pursuant to the provisions of Article 36 of this Law.
The provisions of Article 33(4) of this Law shall apply to enterprises which acquired the status of an enterprise in bankruptcy prior to 1 July 2001. The 24-month period fixed in the Article 33(4) for the liquidation procedure shall start from 1 July 2001. The above enterprise shall be removed from the Register in accordance with the provisions of Article 32(6) of this Law.
4. The Government or the institution authorised by it shall establish:
1) the procedure for furnishing and announcing information relative to the enterprise bankruptcy proceedings;
2) the procedure of representation in bankruptcy proceedings by persons authorised by public authorities;
3) the procedure of selling by auction the assets of the enterprise in bankruptcy or bankrupt enterprise;
4) the procedure for granting natural and legal persons the right to provide bankruptcy administration services, the procedure for controlling the activities of bankruptcy administrators and the procedure for remunerating the bankruptcy administrator.
I promulgate this Law passed by the Seimas of the Republic of Lithuania.