Creditors’ claim

  • 2011-11-03
  • By Indre Triponaite, Assistant to the Attorney at Law

In the Republic of Lithuania Enterprise Bankruptcy Law (hereinafter referred – Enterprise Bankruptcy Law), it is noted that all the terms of payment of debts of an enterprise in bankruptcy shall be considered to have matured as of the day of initiation of bankruptcy proceedings. This means that all payments are suspended, including contractual settlements, after bankruptcy proceedings have been initiated by the court. Once the ruling to initiate bankruptcy proceedings comes into effect, the enterprise cannot perform any financial payments.

Persons to whom an enterprise has a debt under contractual obligations have a right to submit an application to the court for financial claim approval and for inclusion in the list of creditors of the enterprise in bankruptcy. The court, by ruling, approves creditors’ claims who can satisfy their requirements from divisible assets of an enterprise in bankruptcy, under the Enterprise Bankruptcy Law.

Since the ruling to initiate bankruptcy proceedings came into force, creditors cannot collect debts from an enterprise in bankruptcy in different order than stated in bankruptcy procedures. The Enterprise Bankruptcy Law’s Article 35 regulates the sequence of, and procedure for, satisfaction of the creditors’ claims. Under the Enterprise Bankruptcy Law there are no other priority rights in favor of other creditors. Concerned persons are the same as all creditors, and cannot satisfy their financial claims early, ignoring other creditors’ rights, interests or Enterprise Bankruptcy Law provisions.