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International Internet Magazine. Baltic States news & analytics Friday, 19.04.2024, 17:24

On insolvency proceedings of a legal person in Latvia

Aleksandrs Lenkovskis, member of the board of Law office INLAT PLUS, Riga, 02.10.2012.Print version
Question: I’m facing a situation which is quite common nowadays in Latvia. I own a company, which is unable to settle its debts: my clients have failed to pay and the company has no means to settle accounts with suppliers. I’ve heard that upon certain circumstances a company has an obligation to submit insolvency application. What could be those circumstances?

Answer: According to Paragraph 3, Section 60 of the Insolvency law of the Republic of Latvia a debtor is obliged to submit an application for insolvency proceedings upon occurrence of following features (Section 57: Features of the insolvency of a legal person):

 

- the debtor is unable to honour the debt obligations whose deadline has expired;

- in accordance with the initial financial report of liquidation the debtor has insufficient assets to satisfy all the justified claims of the creditors, or this condition is discovered during the course of liquidation;

- the debtor is unable to honour the obligations specified in the plan of measures of the legal protection proceedings (Paragraph 5, Section 51).

 

Law office INLAT PLUS

Brivibas 40-15, Riga

+371 67505970

+371 26403577

[email protected]





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