Nemokumo procesų reforma: keliai ir klystkeliai ; Reform of insolvency procedures: ways and delusions

Abstract

Reform of Insolvency Procedures: Ways and Delusions. The replacement of the Law on Enterprise Bankruptcy and the Law on Enterprise Restructuring by one consolidated Law on Insolvency of Legal Persons is to be considered as one of the major reforms implemented in Lithuania in 2020 affecting the daily economic life. This insolvency reform has introduced many changes and innovations into Lithuanian insolvency law, which not only reconcile procedural differences in insolvency procedures, create preconditions for the rehabilitation of legal persons who are in financial difficulties, but also change a fundamental subject such as the concept of insolvency. Accordingly, the main objective of this master's thesis is to evaluate the insolvency reform of legal persons, identifying the advantages and disadvantages of the changes introduced by the new regulation, based on the practice of foreign countries and international recommendations. The work is structured in such way that the first section analyses the factors behind the insolvency reform that led to its emergence, and then moves on to the presentation of specific reform goals and objectives. After the analysis of will of the legislator, the second section of the work is devoted to the analysis and evaluation of the innovations and changes introduced, identifying the pros and cons of the reform, the potential risks, based on EU practice and various international recommendations on legislation of insolvency law. The final sub-section summarizes the likely impact of insolvency reform and looks at possible perspectives on the Law on Insolvency of Legal Persons, taking into account Lithuania's external and internal factors that may influence insolvency regulation in the future. After the evaluation of the reform of insolvency procedures, the work ends with an assessment of the changes and innovations that have been made, as well as an overview of critical moments that are likely to require the attention of the legislator in further improving Lithuanian insolvency law.