Motieka & Audzevičius Dispute Resolution team has achieved winning related to our client’s (a company that produces edible and crude (unrefined) oil) restructuring proceedings.
A creditor (the bank that granted the loan to the company), which was against the initiation of our client’s restructuring proceedings and actively sought the initiation of bankruptcy proceedings, requested the court to make a new order and set the maximum sum that the company would be entitled to spend each month.
However, such an order would have been an objectionable restraint impeding our client’s activities and restructuring proceedings. Therefore, our law firm submitted detailed and convincing arguments showing that the aforementioned bank request cannot be satisfied.
The court agreed with this position of Motieka & Audzevičius’ Dispute Resolution team and stated that the adoption of the requested order, inter alia, would breach the principle of res judicata. It constituted a sufficient basis to dismiss the request of the bank in its entirety.