Tark Grunte Sutkiene (TGS) has successfully represented BAB Ukio Bankas in a dispute with the German bank Commerzbank AG regarding the ability of Lithuanian companies in bankruptcy to apply for debt recovery from foreign contractors in Lithuanian courts, thus significantly reducing the costs of such cases.
According to a TGS statement, “the case was unique because according to the previously formed case law of the European Court of Justice and the Supreme Court of Lithuania, in order to recover debts from foreign contractors Lithuanian companies in bankruptcy had to apply to courts in foreign countries, thus incurring significant costs.”
The successful result allows Ukio Bankas to defend its rights in courts of the Republic of Lithuania, thus — according to TGS — "reducing incurred financial costs and significantly increasing the likelihood of winning the case.”
Ukio Bankas was a major Lithuanian bank before its activities were suspended and it was put under administration due to liquidity problems in February 2013. Subsequently, the State Deposit and Investment Insurance Fund reached an agreement with AB Siauliu Bankas, a Lithuanian bank with the EBRD among its major shareholders, for Siauliu Bankas to take over all of Ukio Bankas' state-insured deposits and the corresponding amount of assets, with the total value of approximately EUR 780 million.
The TGS team representing Ukio Bankas included Associates Vytautas Gelezinis and Associate Tomas Bairasauskas.