Photo of Judita Grigelyts (V).
The bankruptcy of Arvi fertis, the liquidated tr production company controlled by businessman Vidmantas Kuinskas, was declared intentional. And its former manager Tomas Dudns has been restricted for 3 years from holding the position of manager of a legal entity or being a member of a collegial management body, the Court of Appeal of Lithuania confirmed. The ruling can be appealed in the cassation procedure to the Supreme Court of Lithuania.
In the case, it was established that UAB Arvi fertis entered into loss-making transactions, as well as transactions with related persons on terms that were not beneficial to the company and at the expense of the creditor’s interests. This, according to the assessment of the appellate court, led to the deterioration of the company’s financial situation and is the basis for declaring the company’s bankruptcy intentional. It was also established that UAB Arvi fertis does not properly account for its assets in the accounting records.
In addition, in 2017 UAB Arvi fertis manager T. Dudnas, knowing that the company was no longer paying, did not apply to the court due to the bankruptcy case, but submitted a claim to the court due to the restructuring case, at the same time indicating the company’s financial data that did not correspond to reality, according to the court announcement.
When UAB Arvi fertis became insolvent, T. Dudnas, as its manager, had to apply for the bankruptcy case of the company, but he did not fulfill this duty and thus complicated the legal situation of the company’s creditors. Therefore, the court of first instance properly evaluated the actions of T. Dudna and basically banned him from holding the position of manager of a legal entity or being a member of a collegial management body for 3 years, the Court of Appeal points out.
It is also noted that the court of first instance, deciding to apply a restriction on T. Dudan’s right to hold the position of head of a legal entity or to be a member of a collegial management body, properly adheres to the principle of proportionality.
Such a sanction corresponds to the nature of the offense committed by T. Dudna and it will ensure the objectives of the law.
Belor, the creditor who initiated the case, as already mentioned, when the court decision is final, will be able to apply to T. Dudno for personal compensation (that is, the extent to which the creditor’s claim will be unpaid).
The court submitted the profit (loss) report for 2009-2013. found that the company had been operating at a loss since its inception. I 2019 The list of creditors has established that Arvi fertis does not settle with the creditors to whom the performance deadline is between 2009-2016.
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Tags: appellate court confirmed Arvi fertis bankruptcy intentional
