Protection of Creditors

In the Enterprise Bankruptcy Law of the Republic of Lithuania (hereinafter referred – Enterprise Bankruptcy Law), it is noted that upon the institution of bankruptcy proceedings, the court shall fix the time period within which creditors must present their financial claims. The time period may be not less than 30 days and not longer than 45 days from the date of institution of the bankruptcy proceedings (the Paragraph 5 of the Article 10 of Enterprise Bankruptcy Law). The administrator compiles 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 submits the list to the court for approval; it also contests unproven claims of creditors at the creditors’ meeting and in the court.

The creditors’ claims must be reviewed and approved by the court. The court decision to approve the creditor’s claims or to refuse to approve them could be subject to appeal (the Paragraph 5 of Article 26 of the Enterprise Bankruptcy Law).
After the institution of the bankruptcy proceedings the creditors, whose claims are approved by the court, are recognized by the third parties. From this moment the creditors acquire all procedural rights which are included in the Enterprise Bankruptcy Law, also the right to appeal the court decision.