Category: Lithuania

  • SPC Legal Takes Two from Tailors in Vilnius

    SPC Legal Takes Two from Tailors in Vilnius

    SPC Legal has announced that new Partner Daiva Lileikiene and colleague Edita Barkauskaite have left Tailors to lead the firm’s Public Procurement practice.

    SPC Legal describes Lileikiene as “a well-experienced lawyer in the fields of public procurement and public-private partnership,” and reports that she has “proved her quality in the complex public procurement and PPP disputes, drafting and revising documentation, and consulting clients on various topics related to the public procurement and PPP, also representing them in the negotiation processes.”

    Lileikiene joins SPC Legal from Tailors, where she spent the last four years, and before that she spent almost two years at Jurex and almost four at MAQS. She obtained her Bachelor’s and Master’s Degrees in 2008 and 2010, respectively, from the Mykola Romerio University in Vilnius.

  • Sorainen Lithuania Advised 4finance on USD 325 Million Bond Issuance

    Sorainen Lithuania Advised 4finance on USD 325 Million Bond Issuance

    Sorainen’s Lithuania office has advised 4finance on a USD 325 million bond issue due in 2022. The bonds are listed on the Global Exchange Market of the Irish Stock Exchange.

    4finance is Europe’s largest online mobile consumer lending group.

    Sorainen acted as the issuer’s local legal adviser for the new bond issue and advised on Lithuanian law. The firm’s advice included limited legal due diligence of the issuer’s Lithuanian affiliates, drafting of the Lithuanian-related parts of the bond documentation and corporate authorizations, and issuing transaction opinions on Lithuanian law matters.

    The Sorainen team was led by Counsel Augustas Klezys and included Senior Associates Daiva Liubomirskiene and Dalia Augaite and Associate Arturas Asakavicius.

  • Cobalt Assists East West Agro with Rare Lithuanian IPO

    Cobalt Assists East West Agro with Rare Lithuanian IPO

    Cobalt has represented East West Agro, one of the largest agricultural machinery sales companies in Lithuania, in the initial public offering of the company’s shares, which the firm describes as “the first IPO in Lithuania [in] a long time.”

    EWA’s shares were acquired by 107 investors. The company raised EUR 3 million, and the demand exceeded the supply by 22 percent.

    According to EWA CEO Gediminas Kvietkauskas, the company is aiming to become a listed company having liquid shares that would be attractive to investors. “We have successfully taken a very important step towards this objective by offering 125,000 new shares,” he said. “We are pleased that investors consider our company, its business model and growth plan to be attractive and that they believe in the growth potential of Lithuania’ agricultural sector.”

    The majority of the raised capital will be earmarked for development in Lithuania, as in 2017-2018 new technical maintenance and sales units are planned for the main regions of the country.

    EWA has also started its preparations for getting its shares listed on the Nasdaq First North, a Nordic-Baltic alternative stock exchange for trading in shares. It is planned that the shares will be listed on the First North by May 22, 2017.

    Cobalt lawyers helped the company prepare for the IPO by merging UAB EWA Group with East West Agro and converting the form of East West Agro from a private limited liability company to a public limited liability company, prepared the reference and other related documents, and advising EWA throughout the entire IPO process. The firm is also continuing to advise on the listing of EWA shares on the First North exchange.

    The Cobalt team was led by Head of Banking and Finance Akvile Bosaite.

  • Does the Public Interest Always Win Against Confidentiality of Personal Data? – The Lithuania Case

    The limits and understanding of patients’ right to confidentiality of their private personal data usually depend on the extent of the public interest in seeing it – the definition of which differs among EU Member States.

    Confidentiality exceptions also exist in the category of sensitive personal data, which includes personal health data. According to Lithuania’s Law on the Rights of Patients and Compensation for the Damage to their Health, any information about a patient’s stay in a health care institution and his/her treatment, including information about the patient’s state of health, diagnosis, and prognosis, as well as any other personal information about the patient, is considered confidential even after the patient’s death. The law provides for an exception to this rule: patients’ personal data may be transferred to another public institution without the patient’s consent where that institution is given the right to receive it by law. Therefore, in the public and health care sector, the protection of patients’ private lives, to the extent it relates to personal data, is quite narrow. The new General Data Protection Regulation supports the current practice, leaving the scope of “public interest” to be defined by the Member States. 

    Special Lithuanian laws entitle the Centre of Registers, health care institutions, the social insurance agency, and the disability and working capacity assessment office to receive and use patients’ personal data. The Centre of Registers is the processor of the Lithuanian centralized e-health IT system (ESPBI IS), where all patient data is collected, stored, and used by other health care institutions and public authorities. Still, the problem of data reliability exists because health care institutions delay entering data into the system, and not all institutions are connected to the system because of software or infrastructure incompatibilities. Therefore, the practical and legal reliability of the centralized e-health IT system should be improved. 

    That patient data in the centralized database be sufficiently reliable for use in a court of law and other legal relations is important for four major reasons: First, the quality of health care services cannot be measured without reliable data; therefore the public interest in measuring it is not facilitated and the requirement that the public interest be served is not met. Second, reliable data can reduce the burden of proof in courts for patients protecting their rights. Third, reliable data can ensure the transparency of health care processes (i.e., misdiagnoses or inaccurate interpretations of medical data can be detected more efficiently). Fourth, according to data protection rules, all patient personal data should be correct, and patients have the right to its rectification. Therefore, it is worth discussing further whether Lithuania should include in its laws a legal presumption of correctness of patient data processed in the centralized IT system as it has in Lithuanian legislation concerning public registers. 

    The OECD Public Governance Review 2015 revealed that Lithuania, like Estonia, suffers from low trust in health care services. According to information from the Lithuanian Ministry of Health, 40% of 15-74-year-old people do not trust the health care system in general. Therefore, reliable data in the e-health system and the functioning of electronic prescriptions, which can also serve as a tool for statistical and policy analysis, could enhance the confidence of patients and the quality of the health care system in general.

    Personal data encryption measures are another challenge for future Government policies. It is not necessary to have complete personal data for scientific research or policy evaluation tasks. Art. 32 of the General Data Protection Regulation provides that the controller and processor must implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk, including, inter alia, the anonymization and encryption of personal data, as appropriate. This security measure, at least, should be applicable to sensitive personal data used for public purposes.

    Lithuania has an elaborate legal regime applicable to the use of personal data, which generally strikes a proper balance between private and public interests. However, there are still some limits to the reliability of such data (e.g., in the case of patient data), and there is still some room for improvement in the legal test as well as in how the data is managed by relevant registers. The low level of trust of the public makes it more difficult to justify the use of personal data for activities in the public interest, such as scientific research and policy assessments.

    By Daiva Dumciuviene, Head of Health Care Practice, Tark Grunte Sutkiene

    This Article was originally published in Issue 4.2 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Sorainen Lithuania Advises Kopa on Project in Free Economic Zone

    Sorainen Lithuania Advises Kopa on Project in Free Economic Zone

    Sorainen’s Vilnius office has advised design and publishing company Kopa on the implementation of a new construction project in Lithuania’s Kaunas free economic zone. 

    Kopa started a new printing house project after receiving European Union support for production capacity development and choosing construction company Panevezio Statybos Trestas as contractor. According to Sorainen, “the value of the construction contract alone is around five million euros.”

    Sorainen is providing legal services to Kopa in the fields of design, the construction contract, and EU financing, as well as services related to the day-to-day business of the company.

    The Sorainen team is headed by Senior Associate Asta Augutyte–Rapkeviciene and included Associates Mantas Kuslys, Zilvinas Briedis, and Almina Ivanauskaite.

  • SPC Legal Helps Panevezio Stiklas Obtain Loan from Citadele

    SPC Legal Helps Panevezio Stiklas Obtain Loan from Citadele

    SPC Legal has assisted AB Panevezio Stiklas, a Baltic producer of glass products and processors, in its obtaining of EUR 7.3 million in financing from the Citadele bank to be “used to purchase a new glass furnace and thus to materially upgrade production activities of the company.”

    The firm’s services included negotiating the credit and pledge (mortgage documents), coordinating the signing process, and obtaining notarial approval of the pledge (mortgage) documents.

    The SPC Legal team was led by Partner: Mindaugas Rimkus.

  • SPC Legal Advises Nuomos Verslas on Acquisition of Warehouses

    SPC Legal Advises Nuomos Verslas on Acquisition of Warehouses

    SPC Legal has advised UAB Nuomos Verslas (an investment vehicle owned by the majority shareholders of AB Freda) on its acquisition of 100% of shares of a company holding two warehouses with a total area of 13.000 square meters. Financial details were not disclosed.

    According to SPC Legal, one of the two storage spaces is fully completed and leased out, while the second warehouse is under construction and should be completed later in the year.

    According to SPC Legal, “the Sellers agreed to complete the project after the share sale: “i.e. to finance and manage (coordinate) construction process and to find tenants after completion.”

    The SPC Legal team consisted of Partner Mindaugas Rimkus and Senior Associate Dovidas Vainorius.

  • SPC Legal Assists Modus Group in Changing Holding Structure

    SPC Legal Assists Modus Group in Changing Holding Structure

    SPC Legal has assisted Modus Group in changing its holding structure by making 19 intra-group transfers to change the subordination system of different businesses.

    According to SPC Legal, “Modus Group involves plenty of companies (including Krasta Auto, Prime Auto, Autobrava, Unipark, CityBee, etc.), together generating revenue of approximately EUR 220 million and holding assets (property) exceeding EUR 125 million in value.

    SPC Legal reports that 13 of the sales have been already completed, with the remaining six to be completed within the next two months. The firm’s services included drafting the relevant documents, coordinating the signing process, and registering changes in public registers.

    The SPC Legal team consisted of Partner Mindaugas Rimkus and Senior Associate Dovidas Vainorius.

  • The Buzz in Lithuania: Interview with Ramunas Petravicius of Ellex Valiunas

    The Buzz in Lithuania: Interview with Ramunas Petravicius of Ellex Valiunas

    The Buzz in Lithuania, according to Ellex Valiunas Partner Ramunas Petravicius, focuses on several newly-adopted laws “that are important for all commercial law practitioners.” 

    The first he mentions is the country’s new Labor Code, which was adopted last fall. It encountered huge resistance from labor unions, and was ultimately postponed for July 1, 2017, to allow for revised provisions on labor conditions. These new provisions have been discussed with and accepted by the labor unions, and the Code will be amended accordingly; it is thus expected to enter into force in July as planned. Among the new provisions is one making it easier to hire and fire employees in case of redundancy, with the previous severance payments of between 1-6 monthly salaries reduced to .5-2, and prior notice periods also shortened from 2-4 months to, normally, only 1. Labor unions have accepted that the changes were necessary to improve the country’s productivity and competitiveness — “some of them are quite rational,” Petravicius says — and as the old Labor Code was already incredibly pro-labor, had left them no room to negotiate.  

    Petravicius calls the new Code “very good,” because it incentivizes new investment. “As a small country we have to be competitive,” he says, “and we have to be transparent and clear in our procedures.” in addition, at least in the short term it will increase the work of law firms, “because companies will not know the law and will need to be informed and educated and have policies brought into compliance.”  

    The second law Petravicius refers to is Lithuania’s new Competition Law that came into effect on February 1, implementing the EU’s Directive 2014/104/EU of 26 November 2014 on certain rules governing actions for damages under national law for infringements of competition law provisions. The major change, Petravicius says, is the creation of private enforcement procedures for abuses by companies — meaning that “consumers and other damaged parties can now more easily challenge undertakings that have abused competition law in court”— and new statutes of limitation. As the law should result in increased litigation, it would appear to also mean more work for lawyers.  

    Third, Petravicius refers to the new Law for Public Procurement that is scheduled to come into force on July 1st if it is not vetoed (which “should significantly simplify procedures”), and Lithuania’s implementation of the EU’s General Data Protection Regulation (Regulation (EU) 2016/679), which “creates new requirements especially for retail and banks and other consumer-facing industries.”  

    Turning away from purely legislative developments, Petravicius claims that, following England’s Brexit referendum, many financial services suppliers are looking to minimize the risks by accessing the single EU market, and — according to Petravicius — many financial technology (“FinTech”) companies are making Lithuania one of their target countries, as it has a very FinTech- and innovation-friendly regulator and provides attractive infrastructure solutions. In identifying the country’s advantages, Petravicius cites: (i) fast procedures (an e-money or payment license that is available in three months, with one week pre-approval); (ii) the ability to satisfy Know Your Client obligations remotely, by video; (iii) no regulatory sanctions for FinTech startups for the first year (a so-called “sandbox”); (iv) both banks and other payment institutions (which Petravicius explains include “a certain category of non-bank payment service providers which emerged after 2009 as a result of the enactment of the Payment Services Directive”) are allowed to access payment systems in the Single Euro Payments Area infrastructure; and (v) a specialized bank regime that became effective in January 2017 which requires only EUR 1 million of initial capital (five time less than that required for regular banks).

    Ultimately, Petravicius reports, business is good in Lithuania, as the country is showing “consistent growth in GDP.” Petravicius notes that he and his colleagues have noticed pick up in M&As and real estate transactions, and they are hopeful about the rest of the year. He reports that things are going well for lawyers in the market as well, though he points to increasing competition and notes “changing habits in the market,” including the increasing use of tenders for law firm work, which “push down prices”. Some law firms wish taking work at any cost in order to enter the client or earn experience in certain new field, on the other hand clients always distinguish quality and punish those suppliers who are not able to deliver.  Finally, several smaller law firms past years merged with bigger, and reduced number of players affects positively law firms’ behavior in the market.” 

  • Glimstedt and Sorainen Advise on Sale of Pentagon Office Building

    Glimstedt and Sorainen Advise on Sale of Pentagon Office Building

    Glimstedt has advised the Icor group on its sale of the Pentagon office property and nearby area in Vilnius to the Finnish real estate group Technopolis. Sorainen advised the buyers on the transaction, which was valued at around EUR 32 million.

    The building has a gross leasable area of approximately 13,800 square meters. According to Sorainen, “acquisition of the building is already under contract, while acquisition of the area is expected to be completed by the end of 2017.”

    The Glimstedt team was led by Partners Egidijus Bernotas and Andrius Ivanauskas.

    The Sorainen team consisted of Partner Kestutis Adamonis, Counsel Mantas Petkevicius, and Associates Mantas Kuslys and Lina Stropute.