Company briefs - 2012-03-29

In order to save Snoras Bank’s funds, the court has cut its administration costs, reports ELTA. The Vilnius District Court has confirmed a bankrupted Snoras administration statment. Snoras bankruptcy administrator Neil Cooper has received the right to spend 6.7 million litas (1.9 million euros) for administration costs, excluding 3.8 million litas (1.1 million euros) for staff costs, the court announced on March 23. Another judgement confirmed a list of creditors and a non-rebuttable sum of financial requirements, which amounts to 6.5 billion litas (1.9 billion euros).

The Riga City Council has turned to Riga Regional Court, claiming that the Latvijas Krajbanka insolvency case administrator be sacked, Riga Mayor Nils Usakovs said on March 23, reports LETA. The Riga City Council has objections to the administrator’s work, it says, because the administrator has unilaterally decided not to attempt to restructure the bank, and launched bankruptcy proceedings without the creditors’ consent. The Riga City Council believes that part of the bank’s property and assets may have been “squandered.” Latvijas Krajbanka insolvency administrator KPMG Baltics categorically rejects all recent statements about the company’s “lack of professionalism and working for a third party,” said representative Oskars Firmanis. KPMG Baltics believes that such activities are aimed at applying pressure to the Riga Regional Court, which will decide on the Krajbanka bankruptcy on March 29. These aggressive activities are in the interests of those who want to affect the court’s decision, claims Firmanis. “It is no secret that many individuals still have their funds stuck in Krajbanka due to its former management’s illegal activities. These people are now trying to reclaim these funds by all possible means. We believe that all complaints submitted to courts pursue only one goal - to appoint a more favorable administrator, so that these people would be able to fulfill their interests at the expense of other creditors,” explained Firmanis.