Lithuania's Ministry of Finance announced that the Seimas has approved amendments on the insolvency of legal persons, the bankruptcy of natural persons and related laws to strengthen the insolvency framework. The package tightens impartiality and transparency requirements for insolvency administrators, expands sanctions, adds environmental safeguards, allows electronic voting at creditors' meetings through the Insolvency Portal, and removes the requirement that a natural person must have debts of at least 25 MMW to open bankruptcy proceedings. Most amendments will enter into force on 1 January 2027, while the digitalisation of creditors' meetings will apply from 1 January 2028. For legal entity insolvency, appointment restrictions and conflict of interest rules for administrators are extended to a wider group of related persons, certain transactions with other administrators or affiliated legal entities will require creditor approval, and an administrator who is a natural person will be barred from working for more than one legal person. Financial penalties are added to the sanctions available against insolvency administrators, and the supervisory authority may also impose financial sanctions on the Chamber of Insolvency Administrators for improper performance of its functions. Out-of-court bankruptcy will not be available where a company's assets include unmanaged waste or contaminated soil, with the court required to notify the environmental protection authority and approve waste management costs. The amendments also remove administrative liability for managers of legal entities who fail to submit, or submit late, a court petition to commence bankruptcy proceedings.

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