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Lithuania: bnt insolvency team is advising retreaded tyre manufacturer

bnt attorneys in CEE representing German retreaded tyre manufacturer against insolvent former Lithuanian business partner.

Lawyers from the bnt dispute resolution and insolvency and restructuring teams led by cross-border insolvency specialist and bnt partner Frank Heemann have been advising and representing this German based, largest manufacturer for retreaded tyres in Europe. 

The Lithuanian team of bnt attorneys in CEE has been consulting and representing this client from the very early stages of the financial distress of its Lithuanian business partner, a distributor of tyres in the Lithuanian market.

Work has included legal, pragmatic and tactical advice relating to securing the client’s goods sold and delivered to the Lithuanian partner under retention of title clauses. The team of bnt dispute resolution and bnt insolvency and restructuring experts secured the return of a significant part of the goods kept in stock in bad faith by the Lithuanian buyer. For this, bnt attorneys in CEE lawyers had, among other things, to coordinate court proceedings in German and Lithuanian civil courts and the enforcement actions of the Lithuanian bailiff as well as criminal investigators.

Further work relates to representing the interest of the client in the insolvency proceedings of its former business partner, including representation at creditor meetings, as well as ensuring recognizing the financial claim of the client in the insolvency proceedings.

The insolvency procedure is novel and challenging because it is governed by the new Lithuanian law on Corporate Insolvencies which entered into force on 1.1.2020.