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Sorainen Represents Belor in EUR 1.2 Million Damages Case

Sorainen Represents Belor in EUR 1.2 Million Damages Case

Lithuania
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Sorainen has represented Belor in a dispute with Arvi Fertis administrator Aurimas Valaitis – the Marijampole fertilizer company being in bankruptcy – for compensation of damages amounting to almost EUR 1.2 million.

Belor is a subsidiary of German-based Belor Eurofert and is a Lithuanian fertilizer trading company.

According to Sorainen, “the administrator is alleged to have caused damage to the creditors of Arvi Fertis when the company's assets were illegally transferred to Marijampole's NPK company, which used Arvi Fertis production and other facilities free of charge for approximately two years, although for the use of valuable assets the company in bankruptcy had an opportunity to earn a real income. A part of Arvi Fertis assets used for fertilizer production was acquired by Marijampole NPK 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.”

According to the firm, “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 for 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.”

Sorainen’s team included Partner Laurynas Lukosiunas, Senior Associate Greta Kubiliunaite, and Assistant Lawyer Vincas Sniute.