Court orders asset freeze on Turkish builder of Kaunas stadium

  • 2020-02-13
  • BNS/TBT Staff

KAUNAS - A court has ordered a freeze on 41,500 euros' worth of asserts of Turkey's Kayi Insaat, the former contractor for the construction of a stadium in Lithuania's second-biggest city.  

Kaunas Regional Court issued the freezing order on Wednesday at the request of Kauno Kranai (Kaunas Cranes), a local cranes services provider that is claiming 41,100 euros in debt, interest and penalties from the Turkish company which operates in Lithuania via Kayi Construction's local branch, Milda Bucnyte, the court's spokeswoman, told BNS. 

The Turkish company has a week to appeal the decision to the Lithuanian Court of Appeal. 

Kaunas Municipality last month announced its decision to cancel its contract with Kayi Construction on the reconstruction of the Darius and Girenas Stadium due to the contractor's alleged failure to meet its obligations.

The municipality then said that creditors claimed that the Turkish company had failed to pay them for building materials, designing work and other services. 

The Turkish company has contested the decision to cancel the contract in court.