Our specialists have vast experience in the field of restructuring. We are the leaders in this area having contributed and participating in one third of all the restructuring processes in Lithuania. We have accumulated experience in restructuring of companies ever since 2008 allowing us to provide high quality consulting services when a company is faced with financial difficulties.

Restructuring is the entirety of the procedures and measures set forth in the Law on Corporate Restructuring and designed to allow the company restoring its solvency, preserving and further developing its economic activities, covering debts and avoiding bankruptcy by receiving support from creditors or applying economic, technical, organizational and other means.

Corporate restructuring is one of the legally permitted possibilities for a company to solve its financial problems and continue operating successfully. It is, however, important not to ignore the situation and make steadfast decisions.

Advantages of the status of company under restructuring:

  • Any debt recovery according to the writs of execution are suspended and attachments of current accounts and property are revoked;
  • No bankruptcy suit can be filed against the company;
  • The calculation of all penalties and interest for the liabilities payable by the company and accumulated up to the day the court’s decree to restructure the company became legally binding is revoked, except the late payment fees for payments related to work relationships. The interest to credit institutions may be paid according to a separate agreement during the period of preparing the restructuring plan.
  • All the liabilities accumulated till the day the court’s decree to restructure the company became legally binding are recorded and their payment is suspended according to the governing law. After approval of the restructuring plan, these debts are paid according to the coordinated debt repayment schedule during the period of implementing the restructuring plan which can last up to 4 years (with a possibility of extending this period to 5 years according to the court’s ruling).
  • Differently than in the case of bankruptcy, the company remains managed by the shareholders and general manager (CEO) while the restructuring process is monitored by the restructuring administrator.

Obligations of the company under restructuring:

  • All current payments must be made during the restructuring process;
  • No property can be sold during the period of preparing the restructuring plan without the official permission of the court;
  • Following the approval of the restructuring plan, the company shall closely follow the actions stipulated in the said plan. The restructuring process can be terminated if the company fails to comply with the restructuring plan or the requirements set forth in the Law on Corporate Restructuring.

The course of the restructuring process. The key stages of restructuring are as follows:

  • Initiating the restructuring;
  • Preparing the restructuring plan;
  • Implementing the restructuring plan