Motieka & Audzevicius has represented AB Kauno Grudai, one of the largest agriculture companies in Lithuania, in an investigation initiated by the Lithuanian Competition Council.
According to M&A, the investigation was initiated after adoption of the ruling of October 15, 2014 of the Court of Appeal of Lithuania holding that "the transactions impugned were fictitious and the real party to the said transactions was AB Kauno Grudai. As a result, the Competition Council held that an illegal concentration had been carried out. In this case, the competition authority tries to change the existing case-law arguing that a shareholder retains control over an undertaking during the whole bankruptcy procedure even though a shareholder does not hold the power of a controlling majority nor possesses the right of veto at the meeting of creditors."
The Competition Council‘s decision may still be challenged before the Vilnius Regional Administrative Court.