Vol 22 (2025) - Issue 1

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Sale of Business as a Going Concern: Lithuanian Example of Corporate Rescue

Synopsis
Sale of the business as a going concern (pre-pack proceedings) is one of the rescue mechanisms of business which saves the economic value of the enterprise and allows reorganisation without liquidation. The aim of such sale is transfer of operating business to the new owner which should continue business activities and satisfaction of creditors' claims from the proceeds of such sale. The article examines the development of the
rules on the sale of the business as a going concern in European Union insolvency law and the relevant rules of such procedure in Lithuanian insolvency law.
Though sale of the business as a going concern has become one of the primary means of realisation of assets in insolvency proceedings, it still raises various concerns how to provide an effective mechanism which meet the interests of the creditors and also provides a possibility to rescue business.