OREANDA-NEWS. May 20, 2013. On 15 February 2013 the Vilnius Regional Court (the Court) rejected an application submitted by a minority creditor which contested a resolution of the Creditors’ Committee of BAB Bankas Snoras (bankrupt) to approve the administrative expenses for the Bankruptcy Administrator’s advisors for the period 8 March 2012 to 31 July 2012.

As a result, the position of the Creditors’ Committee was upheld and the Court considered that it was not necessary to review the extensive documentation that supports the expenses given that it had already been analysed by the Creditors’ Committee thoroughly. The Court concluded that all the legal requirements had been observed by the Committee and found no grounds for annulment of the resolution.

On 3 May 2013 the Lithuanian Court of Appeal ruled that in cases such as Bankas SNORAS, the Court should review all documentation supporting the Creditors’ Committee’s resolution, despite the fact that no proof of infringement of any statutory requirements had been identified.

The Lithuanian Court of Appeal did not approve the applicants’ request to annul the resolution of the Committee but has repealed the first instance court ruling and remanded the case back to the Vilnius Regional Court.

Neil Cooper, Bankruptcy Administrator of Bankas SNORAS, has always willingly provided any documentation requested by Court and in this case all the necessary information will be provided upon request to the Court so the Court can satisfy itself that the resolution of the Creditors’ Committee in respect of administrative expenses is reasonable and lawful in all aspects.