REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                                                                                
         ON PRIVATIZATION OF INSOLVENT STATE ENTERPRISES                        
                                                                                
     Article 1.                                                                 
     Pursuant to  the Directive of the Government of the Republic               
of Lithuania,  insolvent  state  enterprises  may  be  privatized               
according  to   the  Republic   of  Lithuania   Law  on   Initial               
Privatization of  State Property  for one  time state allocations               
and other  purposive allocations,  as well  as for  money (LPM --               
coupons), without applying money quotas.                                        
                                                                                
     Article 2.                                                                 
     Prior to  the entry  into force of the Republic of Lithuania               
Law on  Bankruptcy of  Enterprises, state  enterprises,  the  net               
assets of  which have  become less  than 1/3  of  the  authorised               
capital, or  (and) enterprises  which failed to pay the mandatory               
payments specified  in Part  1, Article  36 of  the  Republic  of               
Lithuania Law  on State Enterprises within three months after the               
fixed date, may be declared insolvent.                                          
                                                                                
     Article 3.                                                                 
     Legal and  natural persons  who  have  presented  their  tax               
returns shall  have the  right to  acquire property  of insolvent               
state enterprises which is being sold in pursuance with this Law.               
                                                                                
     Article 4.                                                                 
     Enterprises registered  in the  Republic of  Lithuania, with               
the exception  of state  enterprises and state stock enterprises,               
shall also  have the right to acquire property of insolvent state               
enterprises subject to privatization.                                           
                                                                                
                                                                                
Vytautas Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
Vilnius                                                                         
23 July 1991                                                                    
No. I-1583