"The foreign business people do not waive their right to insurance payments of 345,280 per person. The court violated the Lithuanian Law on Insurance of Deposits and Liabilities to Investors by approving their reduced claim," it quoted Viacheslav Pavlov, the managing partner of the law firm Pavlov & Partners, who is representing Snoras' foreign creditors, as saying.
The foreign creditors lodged their complaint with the Lithuanian Appeals Court on Tuesday, claiming that more than 10 percent of the funds they had held at Snoras were missing from the court-approved list of creditors. The bank's bankruptcy administrator allegedly slashed almost 9 million litas worth of insurance payments they were entitled to.
According to Pavlov, the foreign creditors submitted their claims to the court by the 10 February 2012 deadline, but have not yet received their insurance payments. The demand that the foreign creditors reduce their claims is a big setback for them and they are taking active steps to defend their interests in court. They contest both the amount of the Deposit Insurance Fund's claim and the placing of the fund in the second class of creditors.
Along with their complaint, the foreign creditors also submitted a request to the Vilnius Regional Court to ask the EU Court of Justice to look into whether or not the Lithuanian Law on Banks complies with the EU's directive on depositors' protection.
