Make-up of Snoras creditors' committee already decided

Passions are already running high over the make-up of the committee, which is to be formally appointed during the first meeting, scheduled for 12 June, it writes.

According to the sources, the creditors' committee will consist of seven members, most of whom will represent interests of state-owned companies. However, privately-owned businesses are taking active efforts to have their representatives on the committee as well.

The state-owned Deposit and Investment Insurance Fund, the bank's biggest creditor, has a majority of votes and can decide on the make-up of the committee all by itself. What is known at the moment is that Snoras' current and former employees will have one seat on the committee and have elected Liudas Masolas, CEO of Snoras' Vilnius branch, as their representative.

A seat will go to a representative of the Deposit and Investment Insurance Fund, whose approval will probably be required for the appointment of other members as well. It is said that the state, which is inclined to control the committee, is likely to delegate representatives of Lietuvos Geležinkeliai (Lithuanian Railways), the Klaipėda port authority and municipalities.

At the first meeting, Snoras' bankruptcy administrator, Neil Cooper, is expected to inform the creditors about the progress made to date in the bankruptcy case.

The so-called fourth and fifth groups of creditors are the most dissatisfied. Given that Snoras' creditors are not united in their interests, lawyers predict that new court actions will be taken after the first meeting.