Lifosa appeals appeal against appointment of interim administrator

A special panel of four judges of the Supreme Court and the Supreme Administrative Court of Lithuania ruled on August 10 that Lifosa's appeal can be heard by an administrative court and sent to the Vilnius Regional Administrative Court.

The administrative dispute about the selection and appointment process of the interim administrator, which includes the verification of the candidates' compliance with the requirements, falls within the scope of the administrative dispute and can therefore be examined by the administrative court.

In its appeal, Lifosa says the finance minister's order on the appointment of Finance Guru is unconstitutional and runs counter to the Constitution, the Treaty on European Union, the Charter of Fundamental Rights, and the Convention for the Protection of Human Rights and Fundamental Freedoms.

After the EU on March 9 imposed sanctions against Andrei Melnichenko, a Russian oligarch close to the Kremlin, Lifosa's accounts were frozen. The Kedainiai-based phosphate fertilizer manufacturer suspended operations on April 10.

On May 24, Finance Guru, an insolvency administration company, and its partners, started working as Lifosa's interim administrator, tasked with ensuring the company's operations don't breach international sanctions.

AIM Capital, a Cyprus-registered firm of Melnichenko, holds a 90 percent stake in Lifosa, which is a 100 percent owned by Swiss-registered Eurochem Group.