Voluntary Liquidation of ABLV Bank

On 23 February 2018, the Financial and Capital Market Commission (hereinafter – the FCMC) made a decision on unavailability of deposits at ABLV Bank, AS (hereinafter – the Company) following the statement of the Financial Crimes Enforcement Network of the United States Department of the Treasury. In order to ensure maximum protection of client and creditor interests, on 26 February 2018, at their extraordinary meeting, shareholders of ABLV Bank, AS were forced to make a decision on voluntary liquidation, which was subsequently approved by the FCMC on 12 June 2018. Commencement of Company’s voluntary liquidation marked the beginning of unprecedented voluntary liquidation of a company not only in Latvia, but also in Europe.

The objective of voluntary liquidation is to satisfy claims of Company’s creditors to full extent, unless there are legal obstacles to that. Excess of Company’s assets over its liabilities was the most important prerequisite for approval of voluntary liquidation by the supervisory authorities (the European Central Bank and the FCMC). Currently, assets of the Company amount to EUR 2.35 billion.

With the approval of voluntary liquidation, the Liquidation Committee became the decision-making body of the Company. The Liquidation Committee now consists of four liquidators approved by the FCMC. One of the liquidators – Andris Kovaļčuks – has relevant experience and knowledge in finance and company restructuring. Other three liquidators are sworn attorneys Lauma Bērziņa and Vineta Čukste-Jurjeva, as well as assistant to a sworn attorney Armands Smans, and bring legal experience and expertise.

General Terms of Liquidation of ABLV Bank, AS in Liquidation pdf, 324 Kb