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Lithuania starts liquidation of bankrupt bank Snoras

„Snoro“ banko administratorius Neilas Cooperis
BFL nuotr. / Snoras administrator Neil Cooper
Šaltinis: BNS
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Lithuania ’s Snoras is entering into liquidation procedures and is getting ready to make payments to its employees, whom the bankrupt commercial bank owes approximately 9.2 million litas (EUR 2.67m).

The sale of tangible assets of the bank would be launched, Snoras’ bankruptcy administrator, Neil Cooper, said in a press release. Moreover, Cooper asked Vilnius Regional Court to approve a schedule of payments to the bank’s first-tier creditors.

“This marks the beginning of an important stage of this international bankruptcy process, which is particularly complicated. The announcement of the bank’s liquidation will be followed by the sale of the bank’s tangible assets, including vehicles and other assets, so as to ensure the interests of the creditors,” Cooper said.

Payments to Snoras’ employees will be made as soon as the court approves the payment schedule and the term for challenging this decision expires.

According to BNS sources, the schedule of payments to creditors, which has been compiled by the creditors’ committee, provides that Snoras’ bankruptcy administrator is to make payments to the bank’s former employees, who are first-tier creditors, within 30 days after the court’s ruling on the bank’s liquidation took effect, i.e. by the end of September.

Snoras had around 1,350 employees before its nationalization, most of whom have already been laid off. The bank had a staff of 205 people in early August.

The Lithuanian government nationalized Snoras on 16 November 2011. A court opened bankruptcy proceedings against the bank on 7 December. The court’s ruling on the bank’s liquidation came into effect on 30 August.

BNS
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