We are representing the Lithuanian fertiliser trading company Belor controlled by the German Belor Eurofert in a dispute with the administrator of the Marijampole fertiliser company Arvi fertis, which is in bankruptcy, Aurimas Valaitis, for compensation of damages amounting to almost EUR 1.2 million.
The administrator is alleged to have caused damage to the creditors of Arvi Fertis when the company‘s assets were illegally transferred to Marijampolės NPK company, who used Arvi Fertis production and other facilities free of charge approximately for two years. Although for the use of valuable assets the company in bankruptcy had an opportunity to earn a real income.
Transaction declared as invalid
A part of Arvi Fertis assets used for fertiliser production was acquired by Marijampolė NPK (former Antes) in February 2021 for EUR 7.5 million, but the Court of Appeal declared this transaction as invalid in October last year, as it was concluded‚ as a result of a malicious agreement with the other party to the transaction‘.
In this civil case, Belor argued to the court that the fact that one other prospective buyer was offering to pay EUR 8.3 million for the assets may have been hidden from the creditors.
The Vilnius Regional Court initiated bankruptcy proceedings of Arvi Fertis in May 2019, when the company‘s liabilities to creditors were in excess of EUR 18 million, while the value of its assets amounted to EUR 5.3 million.
Our team representing the client
The client is represented by partner Laurynas Lukošiūnas, senior associate Greta Kubiliūnaitė and assistant lawyer Vincas Šniutė.
