On September 12, 2019, a court of Vidzeme suburb of Riga decided to declare the PNB bank insolvent and appoint an administrator. On September 19, 2019, the bank insolvency administrator published in an official state publication an invitation to creditors to submit their claims to the bank.

Thus, according to the provisions of the law, creditors’ claims must be filed before December 19, 2019. The submission of the claims against PNB Bank is also possible after the specified deadline, however, in this case, the claim would be moved to a less favorable group.

Creditors should be aware that from the moment the PNB bank is declared insolvent, it loses the right to manage its property, as well as the property of third parties at its disposal. The said right, as well as the management of the bank as a whole, is completely transferred to the administrator appointed by the court.

The creditors’ claims against the bank are submitted to the administrator in person or through an attorney. At the stage of consideration of the creditor’s claim, customer identification is carried out and the authority of the officials, the company’s viability, the validity period of the documents and their compliance with formal requirements are checked. To secure position in a more favorable claim group, legal entities are also required to provide documents confirming compliance with the indicators of microenterprises, small and medium enterprises.

During the bank insolvency process, the administrator will have to develop a methodology for compliance with anti-money laundering requirements and approve it in the Finance and Capital Market Commission. The payment of funds to creditors can begin only after the approval of the methodology and after checking the origin of the funds of the creditor, the beneficiaries and the economic activities of the company, according to the approved methodology.

Professionals of LUMOS have extensive experience in representing the interests of creditors in liquidation and insolvency procedures of banks, as well as experience in direct management of such procedures.