Twilight of Vidmantas Kučinskas’ business empire: bankruptcy lawsuit filed against parent company Arvi ir ko | Deal

The bad news brought to businessman V. Kučinskas in 2020 does not end by any means. The main company of the group controlled by V. Kučinskas, Arvi ir ko, filed for bankruptcy on Tuesday.

In late February 2019, Dreymoor Fertilizers Overseas PTE LTD filed bankruptcy proceedings in court against Arvi ir ko, and later, in October, a similar statement was received from another creditor, Belor.

The companies alleged that Arvi ir ko had not submitted its financial statements to the Registry of Legal Entities for more than two years and that the creditors had not recovered their debts since 2016. starting.

In addition, creditors argued that in 2016. The preliminary balance sheet and income statement for the first and third quarters show that the defendant’s income is declining, operating expenses are almost three times higher than his income, and the assets of the Defendant also includes debts of insolvent subsidiaries and associates and uncertain debtors.

On May 13, the Kaunas Regional Court refused to initiate bankruptcy proceedings against Arvi ir ko, but the Lithuanian Court of Appeal referred the case to the lower court for a new trial.

Although Arvi ir ko initially asked for the bankruptcy lawsuit to be dismissed, arguing at the end of this year that it was doing business successfully and making a profit and that it could and could meet its obligations to creditors.

At the Kaunas Regional Court in 2020 December 1 The request was received from the holder of the defendant UAB Arvi Vytautas Freimantas to initiate insolvency proceedings against the defendant UAB Arvi ir ko.

Irmanto Gelūno / 15min nuotr./Arvi

The manager points out that due to the extensive recovery of the plaintiffs and the seizure of assets, the defendant’s activities are substantially paralyzed, causing financial difficulties and inability to carry out economic and commercial activities. The defendant is currently facing a shortage of working capital to meet his current obligations. Due to the lack of working capital, there are delays in the payment of taxes to the state and in the settlement of accounts with other creditors, ”the court ruling indicates.

The financial statements presented to the court by the company revealed that during 2020. Arvi ir ko received only 17,796.00 euros in income from its operations and its equity decreased by more than 8 million euros. EUR: from 40.8 million to almost 32.4 million euros. euros. Meanwhile, liabilities almost doubled: to 20.8 million. of which up to 14.9 million. Liabilities in euros are paid within one year.

The court determined that the movable and immovable property of the company are of low value, financial assets have been depreciated due to insolvency proceedings initiated by companies whose shares are currently held by Arvi ir ko, so there is no the possibility of liquidating these assets with all creditors.

“After assessing the defendant’s business prospects and balance sheet data, the defendant would not be able to cover ongoing expenses and repay debts to creditors, which amount to more than EUR 20791639, if he continued with his business and economic activities. The defendant is insolvent and cannot and will not be able to fulfill his obligations in the future because it is not viable, so he is subject to bankruptcy, “says the court ruling.

It is true that Laurynas Lukošiūnas, a lawyer representing another large creditor of V. Kučinskas, representing the Russian bank Alfa Bank 15 minutes He said the bank is currently considering whether to appeal the order.

Photo by Sorainen / lawyer Laurynas Lukošiūnas

According to Alfa Bank, the size of the company’s assets and liabilities was not determined precisely when deciding on Arvi ir ko’s bankruptcy, and the company’s management did not provide the required information. Alfa Bank is evaluating whether to appeal against the judgment of the court of first instance ”, said L. Lukošiūnas.

Debts 40 million. euros

The documents presented to the court prove this in 2020. October 31 Arvi ir ko’s total assets are 53 million. of which fixed assets – 28.5 million. EUR: mainly financial assets and accounts receivable at one year.

However, most of Arvi ir ko’s subsidiaries are also facing financial difficulties: Arvi fertis and Lietuvos cukrus are bankrupt, ARVI turkeys, Rietavas veterinary sanitation and Marijampolės pašarai are being restructured, etc.

Arvi ir ko 2020 December 11, the list of creditors confirms that the defendant’s liability on the date in question amounted to 21.7 million euros. euros and they are all overdue. However, the court noted that Arvi ir ko’s list of creditors does not include all financial claims of creditors.

Marshals Information Systems 2020 Dec 28 Data confirms that ten execution cases have been initiated against the defendant at Sheriff A. Auglis’s office. Forced recoveries are made in favor of the State Tax Inspectorate, Belor, Dreymoor Fertilizers Overseas PTE LTD, JP Srbijagas, the Marijampolė branch of the State Social Security Fund and Swedbank.

In addition, the Russian bank Alfa Bank also has claims for 9 million. euros.

“In light of the foregoing, it must be concluded that, in total, the defendant’s arrears amounted to at least 40.6 million euros. Amount in euros “, – indicated in the court order.

The UAB Restrus, bankruptcy administrator, has been appointed to administer the bankruptcy procedure of the company.

The criminal case was dropped

2020 did not bring success to V. Kučinskas. During a summer vacation, V. Kučinskas was arrested in Slovenia at the request of Russia.

In Russia, the local bank Alfa Bank, to which the Lithuanian businessman owes 20 million. At the initiative of V. Kučinskas, a pre-trial investigation was launched into possible indications of fraud and suspicions of financial machinations.

Later, it turned out that four years ago a pre-trial investigation was also launched against V. Kučinskas in Lithuania; At the request of a creditor, Belor, the investigation into possible fraud, misuse of foreign property, property damage from fraud and criminal bankruptcy was carried out.

Photo by Irmantas Gelūnas / 15min / Vidmantas Kučinskas

By the way, on the basis of this criminal case, a European arrest warrant was issued, which determined that V. Kučinskas, who was arrested in Slovenia in the summer at the request of Russia, was transferred to Lithuania instead of Russia after four months of detention.

It is true that V. Kučinskas received the first good news before Christmas: the Kaunas Regional Public Prosecutor’s Office ended this pre-trial investigation, although the creditors still promise to appeal this decision.