bnt attorneys in CEE support insolvent AWUKO in Lithuania.
The bnt insolvency and restructuring team led by cross-border insolvency specialist and bnt partner Frank Heemann advised Lithuania’s company AWUKO on insolvency and related questions after AWUKO’s German mother company fell into insolvency.
AWUKO is a globally operating German family enterprise and long-time world market leader in the field of abrasive technologies
The work of the insolvency lawyers of bnt attorneys in CEE included legal, pragmatic and tactical advice relating to securing company assets, negotiations with the landlord and potential investors as well as communication with the insolvency administrator of the German AWUKO mother company. Lawyers from bnt attorneys in CEE also advised the company’s Lithuanian management concerning the opening of insolvency proceedings in Lithuania and related questions in terms of discharging management obligations after it had become clear that the Lithuanian AWUKO daughter could not be rescued due to the insolvency of its German mother company.
The advisory team from bnt attorneys in CEE was led by partner Frank Heemann, who has many years’ experience in cross-border insolvency cases with senior associate and attorney-at-law (advokatas) Dr. Andrius Juškys.
Under the Law on Insolvency of Legal Entities the company’s director must initiate insolvency proceedings if the company becomes insolvent. Failure to comply with this obligation may result in the director’s liability to compensate creditors for damage caused. So if a company is unable to meet its financial obligations or if its liabilities exceed the value of its assets, the company’s director must act without delay and:
– inform the shareholders of the insolvency and propose solutions for restoration of solvency;
– initiate insolvency proceedings;
– take other action to protect the interests of creditors.