"Bankruptcy proceedings will be opened against the bad bank. A bankruptcy administrator will be appointed," Adomas Audickas said at a news conference late on Saturday.
The temporary administrator told BNS later that the 'bad' part of Ūkio Bankas was valued between 400 million and 500 million litas (EUR 116-145m).
"Ūkio Bankas' bad assets are very risky. These include properties in Russia and Scotland. The recovery of these assets could be more difficult," he said at the news conference.
Audickas said that the state company Indėlių ir Investicijų Draudimas (Deposit and Investment Insurance) would be the largest creditor in the bankruptcy case.
It was announced late on Saturday that Šiaulių Bankas signed a trilateral agreement with the temporary administrator and the state deposit insurance company to take over part of Ūkio Bankas' liabilities, assets, rights and transactions.
Šiaulių Bankas is taking over 2.7 billion litas worth of insured deposits and around 1.9 billion litas worth of assets. Indėlių ir Investicijų Draudimas is to contribute the remaining 800 million litas.
