Authorized translation                        
                      REPUBLIC OF LITHUANIA                                     
           ON THE PROVISIONAL PROCEDURE OF BANKRUPTCY                           
                     July 15, 1993 No. I-227                                    
     Article 1. Objectives of the Law                                           
     This Law  shall regulate  the relations  which appear during               
the  application  of  the  bankruptcy  procedure  to  enterprises               
processing agricultural  products in cases when  said enterprises               
delay effecting  settlements with  the suppliers  of agricultural               
     Article 2. Initiation of Enterprise Bankruptcy Proceedings                 
     Under this  Law, bankruptcy proceedings may be instituted by               
the Ministry of Agriculture or by an officially registered public               
organisation of agricultural producers.                                         
     Article 3. Conditions of Instituting Enterprise Bankruptcy                 
        Under this  Law, bankruptcy proceedings may be instituted               
if an  enterprise   fails, for  a period  exceeding 28  days,  to               
effect payments to suppliers for supplied agricultural products.                
     The  court   shall  institute   bankruptcy  proceedings   in               
accordance with an application filed by the entities specified in               
Article 2 who are initiating  bankruptcy proceedings.                           
     Article 4. Instituting Bankruptcy Proceedings in Court                     
     Enterprise bankruptcy proceedings shall be instituted by the               
court of  the locality  wherein the main office of the enterprise               
is located.                                                                     
     Upon accepting  the   application  of  the  initiators,  the               
court, within 4 working days, must:                                             
     1) notify  the enterprise  in writing  of the opening of the               
     2) give  public notice of the opening of the bankruptcy case               
in the  press of  the locality  wherein the  main office  of  the               
enterprise  is   situated  and  over  Lithuanian  Radio,  thereby               
     the court  which shall  investigate the  bankruptcy case and               
the number of the case;                                                         
     the requisites of the insolvent enterprise; and                            
     the date and place of the first court sitting.                             
     The Lithuanian  Radio must  accept such  an announcement and               
must broadcast  it during informational programmes and programmes               
for the countryside at least 3 times during the next 3 days;                    
     3)  notify   in  writing  the  entities  who  initiated  the               
proceedings of the institution of the proceedings, presenting the               
information set forth in Par.2; and                                             
     4) appoint a liquidator of the enterprise.                                 
     Article 5. The Enterprise Liquidator                                       
     The  liquidator  shall  be  the  manager  of  an  enterprise               
appointed for  the period  of  investigation  of  the  enterprise               
bankruptcy case and the liquidation of the enterprise. The rights               
and duties  of the  liquidator shall  be specified  in Articles 7               
and 8  of the  Law on  Enterprise Bankruptcy  of the  Republic of               
     Article 6. Investigation of Bankruptcy Cases during Court                  
     Pursuant to  this Law,  a bankruptcy  case must  be  brought               
before   court no sooner than 30 days, and no later than 45 days,               
after appointment of the liquidator.                                            
     Bankruptcy  cases  shall  be  dismissed  if  the  enterprise               
produces adequate  proof at  the court  sitting that there are no               
more suppliers  of agricultural  products to  whom the enterprise               
has failed  to pay debts for over 28 days since due date, or that               
it is  not in the position to liquidate the remaining debts owing               
to technical reasons which are beyond the enterprise's control.                 
     If an  enterprise  is  unable  to  liquidate  its  debts  to               
suppliers of  agricultural products,  the court shall declare the               
enterprise bankrupt.                                                            
     Article 7. Suspension and Dismissal of Cases on the                        
               Initiative of the Entities who Initiated                         
               Bankruptcy Proceedings                                           
     If  an   enterprise  takes   appropriate  actions   to  make               
settlements with  the suppliers  of  agricultural  products,  the               
entities who  initiated bankruptcy  proceedings  shall  have  the               
right to  request that the court postpone the hearing for as many               
as 30 days.                                                                     
     If the  entity who  initiated bankruptcy proceedings obtains               
ample proof  that the  enterprise has  liquidated those  debts to               
suppliers of agricultural products which matured before more than               
28 days, it may terminate the bankruptcy proceedings.                           
     Article 8. Legal Consequences of Bankruptcy                                
     The bankruptcy  of an  enterprise declared  under  this  Law               
shall signify that from the day the adjudication order to declare               
the enterprise  bankrupt is  pronounced, the former owners of the               
enterprise  shall   lose  ownership  rights  to  the  enterprise,               
whereas the  rights of  the provisional founder of the enterprise               
shall be delegated to the Ministry of Agriculture.                              
     The liquidator  of an  enterprise, in  conjunction  with the               
provisional founder,  shall, within  45 days,  perform all  legal               
actions requisite  for  issuing  shares  of  the  enterprise  and               
distributing them  among suppliers  of agricultural products. The               
shares shall  be distributed  in proportion  to the  enterprise's               
indebtedness to the  agricultural product suppliers on the day of               
the pronouncement  of  the  adjudication  order  to  declare  the               
enterprise bankrupt. Concurrently and within the same period, the               
liquidator of  the  enterprise,  together  with  the  provisional               
founder, shall  announce the  date and  place for  a  meeting  of               
shareholders. The  meeting must  be conducted  in accordance with               
the requirements  established in the Law on Stock Corporations of               
the Republic of Lithuania.                                                      
     Article 9. Relations between the Enterprise and other                      
     All  the   liabilities  of  an  enterprise  which  has  been               
adjudicated bankrupt  under this  Law to its creditors other than               
agricultural product suppliers shall remain enforceable and shall               
be discharged in the general manner.                                            
     Article 10. Period of Validity of this Law                                 
      This Law shall become effective within 21 days from the day               
of its  promulgation, and  bankruptcy procedures may be commenced               
until March 31, 1994.                                                           
     I promulgate  this Law  passed by the Seimas of the Republic               
of Lithuania.                                                                   
President of the Republic               Algirdas Brazauskas