Emitents | ABLV Bank, AS (549300IHIJ7SCANBWN17) |
Veids | 2.2. Iekšējā informācija |
Valoda | EN |
Statuss | Publicēts |
Versija | |
Datums | 2018-06-13 11:34:57 |
Versijas komentārs | |
Teksts |
With the decision taken by the Financial and Capital Market Commission (FCMC) the largest credit institution’s liquidation procedure in the history of Latvia is officially approved — a bank having current assets amounting to EUR 2.4 billion is to be liquidated.
As reported by the FCMC, in the upcoming days a draft decision on the withdrawing of the bank’s license is going to be prepared and submitted to the European Central Bank. In three days after the license is withdrawn, the liquidators of ABLV will publish a note about the voluntary liquidation in Latvia’s official newspaper “Latvijas Vēstnesis”, which means the start of a three-month term for lodging creditors’ claims. Along with the approval of the voluntary liquidation, the members of the bank’s council and board lose their powers, and the operation will be taken over by the new executive body of the Bank – the Liquidation Committee, which will consist of the four liquidators approved by the Financial and Capital Market Commission. Two of the liquidators have the appropriate experience and expertise in finance and commerce, while other two are sworn attorneys: sworn attorneys Eva Berlaus and Elvijs Vēbers, real estate and finance expert Andris Kovaļčuks, and an expert in corporate finance Arvīds Kostomārovs. Liquidators will also be supported by independent experts and an international auditor Ernst&Young delegating experts from at least five countries. “After 25 years of work put in building this company, it is hard to say these words, yet we are satisfied with the decision made. It is the best possible solution in this situation. Management of the bank will be in the hands of competent, professional and independent team of liquidators, who will do everything to satisfy claims of all creditors to 100%. We are glad that the process will take place under the supervision of the FCMC in collaboration with an international auditor”, says Ernests Bernis, now former Chairman of the Board of the bank. As reported, the shareholders of the bank were forced to make a decision on voluntary liquidation in response to the decisions made by the European Central Bank (ECB) and the Single Resolution Board (SRB) on 23 February, when the ECB decided that ABLV and its subsidiary bank in Luxembourg is failing or likely to fail and therefore the banks are to be liquidated in accordance with local legislation. Taking into account the way the forced liquidation processes have taken place in Latvia by now, the shareholders of the bank decided to go through voluntary liquidation process. On the liquidation process The aim of the voluntary liquidation is to satisfy the claims and protect the interests of all creditors of the bank to 100%. Under this process, there will be various activities carried out in order to ensure that ABLV settles with all creditors in full. ABLV Bank assumes that by the end of 2020, up to 95% of all deposits will already be disbursed, including the funds that have already been transferred for paying the compensations guaranteed by the law. The remaining amount of deposits, as well as other claims of the creditors, including claims about bonds and subordinated claims, it is planned to disburse under further course of the liquidation. In general, it is estimated that the liquidation process could take approximately five years. Withdrawal of the bank’s license and the following steps under the liquidation After the decision made by the FCMC, the European Central Bank will decide on withdrawing the bank’s license. Soon the clients will be invited to lodge their claims as creditors within three months. in order to lodge a claim, one should prove ones eligibility for it and its amount, as well as present updated identification documents and documents certifying the rights of representation. Given the number of creditors, there will be about three months required after the end of term for lodging claims in order to review the claims, approve them and make a list of creditors. After the list of creditors is compiled, the disbursement of funds will continue starting from the so called creditors of second order. The disbursement of funds to the creditors of the first order, the ones having deposits up to EUR 100,000, has already been started in March 2018 through the Deposit Guarantee Fund. Information for borrowers Commencement of the voluntary liquidation does not affect the existing procedure of settlement of liabilities. One should continue settling one’s liabilities against the bank as it was done before. It is estimated that after the withdrawal of the bank’s license, one shall be required to make the payments for settlement of liabilities to another licensed credit institution. The clients will be informed about it individually soon. On Financial Performance of ABLV as at 30 April 2018:
ABLV Group
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