Translation from Lithuanian

Translation from Lithuanian Translation from Lithuanian GOVERNMENT OF THE REPUBLIC OF LITHUANIA R E S O L U T I O N No.590 On the Approval of the Regulations of the Sale of the Assets of the Bankrupt Enterprises by Bidding (Auction) Vilnius, 30 July 1993 In implementing the Republic of Lithuania Law on Enterprise Bankruptcy, the Government of the Republic of Lithuania resolves: To approve the Regulations of the Sale of Assets of the Bankrupt Enterprises by Bidding (Auction) (attached hereto). Prime Minister Adolfas Ðleþevièius Minister of Economics Julius Veselka APPROVED by Resolution No.590 of 30 July 1993 of the Government of the Republic of Lithuania Regulations of the Sale of Assets of Bankrupt Enterprises by Bidding (Auction) General Provisions

1. These regulations shall regulate the announcement, organisation and holding of bidding for the sale of assets of bankrupt enterprises, as well as of the procedure for payment for the acquired assets.
2. The sale of the assets of bankrupt enterprises by bidding shall mean the public sale of the assets or portion thereof of an enterprise when the enterprise (assets) under sale is acquired by the buyer offering the highest price.
3. The right to participate in bidding shall be given to: 3.
4. legal persons; 3.
5. natural persons; 3.
6. groups of natural persons (not in excess of 20 members). Buyers shall participate in bidding personally or through their representatives. The Organisation of Bidding
7. Bidding shall be announced, organised and conducted by the liquidation commission of the bankrupt enterprise, which, for this purpose, shall form a bidding work group consisting of an conductor (auctioneer), a clerk, a book keeper and group members. The liquidation commission may invite experts for the appraisal of the enterprise (assets).
8. The bidding work group shall organise: 5.
9. the printing of tickets (the number of the ticket shall also be the bidder's number) for bidders and spectators wishing to participate in the bidding. Spectators shall be admitted to biddings with spectator tickets. The ticket price shall be determined by the bidding work group; 5.
10. the preparation and presentation of economic and technical data about the enterprise.
11. Economic and technical data about the enterprise (assets) under sale shall include: 6.
12. the name of the enterprise (assets), its main technical parametres, and the starting price; 6.
13. the type of activities (the purpose of the property) of the enterprise; 6.
14. for motor vehicles -- a copy of the technical certificate (its year of production, body number, colour, brand, engine and chasis numbers, engine cylinder, and capacity).
15. A deposit shall be established for the bidders, which shall be included in the price of the purchased enterprise (assets) or repaid to bidders who do not buy anything (with the exception of cases specified in paragraphs 12 and 15). The deposit shall equal 10 percent of the starting price of the enterprise (assets) tendered for sale. This sum shall be paid by the buyer in cash or remitted to the account specified by the bidding work group. Instead of a deposit, a pledge of a bidder authenticated by a notary may be presented (in accordance with Appendix 1).
16. Persons wishing to participate in the bidding must register and must, at the time of registration, submit to the bidding work group: 8.
17. documentation of identification; 8.
18. authorisation authenticated by a notary (if a person wishes to participate in an auction through a representative); 8.
19. a bank-issued document or an order of cash receipts of the enterprise tendered for sale by auction, certifying the payment of deposit, or a pledge of a bidder authenticated by a notary; 8.
20. the founding agreement of a group of natural persons authenticated by a notary (in the event that a group of natural persons wishes to participate as a bidder) as well as authorisation of this group to participate in the bidding; and 8.
21. the name and address of the bank wherein the bidder has an account as well as the account number. Publication of Information Concerning the Organisation of the Bidding
22. Information concerning the bidding must be published in the daily papers of the Republic of Lithuania at least 30 calendar days prior to the bidding. The following data must be included in the announcement: 9.
23. the name, address, and type of activities of the pbankrupt enterprise; 9.
24. the place and date of the bidding; 9.
25. the place and date for bidder registration; 9.
26. the address, telephone number and business hours of the bidding work group; 9.
27. the date of the inspection of the enterprise (assets) tendered for sale; 9.
28. the number of the account into which payment for the purchased enterprise (assets) must be made, as well as the name and address of the bank which said account is in. Payment for Acquired Enterprises (Assets)
29. The buyer shall pay for the enterprise acquired by bidding through a bank, except in the event that the starting price of the property does not exceed 10 minimum standards of living. In such a case, the buyer may pay at the bidding with cash (litas). The Conduct of Bidding
30. The bidding may take place if there are at least two bidders participating in it.
31. During the bidding, the bidding record shall be kept (according to Appendix 2). At the beginning of the bidding, the conductor (auctioneer) must describe the enterprise (assets) which is for sale and announce its price. Bidders shall make bids by raising their ticket numbers (bidder numbers) facing the conductor (auctioneer) and announcing their offered price. The conductor (auctioneer) shall repeat each price offered, accepting the bid by the fall of the hammer. When none of the bidders offer a higher price, the conductor (auctioneer) shall announce the last price and the number of the bidder who offered it and shall repeat this price three times, followed by three strikes of the hammer. After the third strike of the hammer, the sale of the enterprise (assets) shall be concluded (except in the case specified in paragraph 15) and the highest bid and the number of the highest bidder shall be entered in the record. The highest bidder must confirm that the final price stated in the bidding record corresponds to the price which he or she bid by signing the bidding record. If the buyer does not submit a bidder's ticket or does not sign the bidding record, thereby refusing to buy the enterprise (assets), the bidding shall be deemed not to have taken place and its organisers must indicate this in the bidding record. Such bidders shall lose their deposit and the bidding of the unsold enterprise (assets) shall be immediately repeated and a new bidding record shall be taken. If not a single purchaser wants to buy the enterprise (assets) at the starting price, the conductor (auctioneer) shall have the right to reduce the starting price of the enterprise (assets) during the bidding. During the bidding, the conductor (auctioneer) may not announce the price of the enterprise (assets) to be lower than the book (salvage) value of the enterprise (assets), and in each case this price may not be reduced by more than 5 percent. Official Registration of Payment for the Acquired Property and Bidding Transactions
32. The bidding work group shall issue a certificate to the highest bidder who signed the bidding record for payment for the acquired enterprise (assets) (according to Appendix 3). The certificate shall be drawn up in three copies. One copy shall remain with the bidding work group, and the other two copies shall be issued to the bidder. The bidder shall present one copy of the certificate to the bank, and shall keep the other one for his or herself. This certificate shall be valid for 15 days after its date of issue (conclusion of the auction). Within this period, the bidder must pay the difference between the price of the enterprise (assets) and the deposit (provided that it was paid).
33. When the highest bidder who has signed the bidding record pays for the acquired enterprise (assets) with cash in accordance with the procedure provided for in paragraph 10, the auction work group shall write out commodity receipt (two copies) for the bidder stating the name of the enterprise (assets), the date of sale, the number of the bidder, and the sum which must be paid. The first copy of the commodity receipt shall be presented to the purchaser who pays for the acquired enterprise (assets) on it in the payment department of the enterprise under sale ; the copy shall be left with the bidding work group, which will enter commodity receipt requisites in the bidding record.
34. In the event that the bidder fails to pay the sums specified in paragraphs 13 and 14 within the 15 calendar days following the signing of the bidding record, or fails to present to the bidding work group bank document proving the payment or the cash receipts order of the enterprise sold by bidding, the auction shall be deemed not to have taken place and the deposit shall not be returned to the bidder.
35. The liquidation commission of the bankrupt enterprise shall, within 7 days after the bidding, remit the deposits of bidders who did not purchase anything (provided that these deposits were paid) to the accounts specified by the bidders. Confirmation of the Results of Bidding and the Issue of Ownership Documents
36. The liquidation commission of the bankrupt enterprise shall, upon receipt of a bank-issued payment confirmation as specified in paragraph 15 or a cash receipt order of the enterprise sold by bidding, confirm the results of the bidding within 5 days.
37. The liquidation commission of the bankrupt enterprise must, within 30 days after the bidding, issue an ownership certificate (in accordance with Appendix 4) to the person who has acquired the enterprise (assets). This certificate shall serve as the basis for the legal registration of the purchased enterprise (assets) by state design and inventory service bureaux. Unexecuted and Void Biddings
38. Biddings shall be considered to be unexecuted if: 19.
39. less than 2 bidders participate in it; 19.
40. the highest bidder refuses to pay or sign the bidding record; 19.
41. the highest bidder does not pay for the purchased enterprise (assets) in due time.
42. In the event that a bidding is not executed, the liquidation commission of the bankrupt enterprise shall, within 7 calendar days, remit deposits to the accounts specified by the respective bidders (if these deposits were paid), with the exception of cases provided for in these regulations when deposits are not subject to be returned.
43. Biddings shall be deemed void if the transactions concluded during them are deemed void pursuant to the legal procedure for the reason that: 21.
44. the date and place of the bidding was not announced in the daily papers of the Republic of Lithuania or if the announcement was not made in compliance with these regulations; 21.
45. the enterprise (assets) was acquired by a person who did not have the right to take part in the bidding; 21.
46. other rules of the bidding were grossly violated; 21.
47. there exist other grounds established by laws for deeming transactions void. Appendix 1 to the Regulations of the Sale of the Assets of Bankrupt Enterprises by Bidding The Bidder's Pledge ___________________________________________________________________________ (day, month, year in words)
48. I,_________________________________________________________________ , (name and address of person or group of legal or natural persons) pledge to pay 10 percent of the starting price of __________________________________ __________________________________________________________________________ , (name of the enterprise (assets)) amounting to _________________________________________________, (sum of litas in words) if, upon bidding the highest price, I refuse to sign the record of the bidding or if I fail to pay for the purchased enterprise (assets) in due time.
49. I will pay the sum specified in paragraph 1 within 15 calendar days from the expiration of the date on which payment for the acquired enterprise (assets) is due.
50. The account number to which payment for the purchased enterprise (assets) must be remitted as well as the name and address of the bank which the account is in:_______________________________________________________________________.
51. This pledge has been submitted to the bidding organizing group during the time of bidding in___________________________________________________________ ___________________________________________________________________________. (name of the town, district, and enterprise wherein the bidding is held) Bidder: _________________________ (Signature) Appendix 2 to the Regulations of the Sale of Assets of Bankrupt Enterprises by Bidding Certified by the Chairperson of the enterprise liquidation commission ________________________________ (signature -- first initial, surname) ________________________________ (date of signing) ___________________________________________________________________________ (liquidation commission of the bankrupt enterprise organizing the bidding) Bidding Record No.____
52. Bidding place and date: ____________________________________________________ ___________________________________________________________________________.
53. Name and address of the enterprise (assets) being sold: __________________________ ___________________________________________________________________________.
54. Starting price of the enterprise (assets) being sold: _____________________________ ___________________________________________________________________________.
55. The highest bid: __________________________________________________________. (sum in words)
56. Participating in the bidding were ______________ persons and ___________________ groups of natural persons.
57. Full name, address, and bidding number of the highest bidder: ___________________ ___________________________________________________________________________.
58. Requisites of the commodity receipt: _______________________.
59. Within 15 days from the issue of the payment certificate for the enterprise (assets) purchased by bidding, the buyer must remit ______________________________________ (sum in words) ____________________________ to the account specified by the liquidation commission of the enterprise. Person who acquired Organizers of the bidding: the enterprise (assets) Conductor (Auctioneer): or authorised representative _____________________________ of the group of natural persons who (signature) (first initial, surname) acquired the enterprise (assets) ____________________________ (signature -- first initial, surname) Book keeper:_____________________________________ (signature -- first initial, surname) Clerk: ________________________________________ (signature -- first initial, surname) Appendix 3 to the Regulations of the Sale of Assets of Bankrupt Enterprises by Bidding Payment Certificate for an enterprise (assets) bought by bidding At the bidding which took place at _____________________________________________ (place of bidding) _________________________________________ on ______________________________, (date of bidding) ___________________________________________________________________________ (full name, address, and bidder's number of the person or representative of the group of legal or natural persons) acquired ___________________________________________________________________, (name and address of the enterprise (assets)) at the price of ______________________________________________________________. (sum in words) The buyer must remit ____________________________________________________ litas (sum in words) to account No. ___________ at ________________________________________________ (name and address of bank) by _____________________. (date) Organisers of the bidding: Conductor (Auctioneer): ________________________________________ (signature -- first initial, surname) Book keeper: _________________________________________ (signature -- first initial, surname) Clerk: __________________________________________ (signature -- first initial, surname) Appendix 4 to the Regulations of the Sale of Assets of Bankrupt Enterprises by Bidding State Emblem of the Republic of Lithuania Ownership Certificate ___________________________________________________________________________ (day, month, year in words) ___________________________________________________________________________, (name of the liquidation commission of the enterprise) pursuant to the Law of the Republic of Lithuania on Enterprise Bankruptcy and having approved the results of the bidding which took place on __________________________ , (date of the bidding) certify that _________________________________________________________________ (full name and address of the enterprise (assets)) belongs by the right of ownership to __________________________________________ ___________________________________________________________________________, ( name, address and bidder's number of the person or authorised representative of the group of legal or natural persons) acquired for ________________________________________________________________. (sum in words) Chairperson of the liquidation commission of ________________: ___________________________________ (enterprise name) (signature -- first initial, surname)