TALLINN (BNS) –The Estonian Privatization Trust Fund has called a general meeting of its shareholders for Aug. 15, at which shareholders will be asked to vote in favor of winding up the fund.
"The proposal to wind up the Privatization Trust Fund is due to the fact that bankruptcy proceedings have started against the fund's deposit bank — Maapank," director of the Estonian Securities Inspectorate Marek Magi said.
The law says that in the event of the deposit bank's bankruptcy, funds operating their securities accounts through the bank will be subjected to compulsory liquidation unless they find a new deposit bank within two weeks. The fund has problems finding a new bank, and even in finding a new fund manager, Magi said. Since their shares practically have no secondary market, they will propose liquidation at the fund's own request.
No deals are conducted in the fund's shares pending the decision of the shareholders. If the fund is liquidated, money will be divided proportionally among shareholders, Magi said.
The volume of the Privatization Trust Fund was 8.727 million kroons ($620,000) on July 15.