Aligning the pre-petition interests in corporate bankruptcy: a Lithuanian approach

Abstract

This article outlines the new rules of intentional (fraudulent) corporate bankruptcy, which were recently introduced into the Lithuanian corporate bankruptcy law. We initially examine the functions of the introduced amendments, arguing that they can be usefully seen as an instrument to tackle agency problems arising in pre-petition situations. Thereafter, the positive law is discussed and its potential impacts are considered in the context of its overreaching function.