Although the economy of the Baltic States shows stabilising trends, no grounds exist for premature optimism. Statistics indicate that growth in the number of insolvency and restructuring cases has not slowed. Therefore it is still important to follow the situation of every company and its cooperation partners so as to be able to take necessary measures promptly if problems occur. To fulfil their obligations and avoid liability, management board members should turn to the “Practical tips to board members of troubled companies” included in this Restructuring & Insolvency Legal Update.

In the meanwhile, foreign creditors and local market players are openly criticising insolvency laws and lengthy insolvency procedures in the Baltic States resulting in slow return of assets from failed businesses. In this Legal Update, read about the latest amendments to the Estonian Bankruptcy Act and court decisions in all Baltic States, for example, on observing the proportionality principle in restructuring cases in Latvia.

Finally, as investors become more active in Belarus, this Legal Update includes a short summary of main insolvency regulations in that country.

Yours sincerely,

Ģirts Rūda
Partner, Regional Head of the SORAINEN Restructuring & Insolvency Team

Latvian Supreme Court Rejects Present Restructuring Practice

Brief summary of Belarus Insolvency laws