Activity of provisional administration to manage Public bank (JSC) terminated
On 16 November 2020, the Bank of Russia terminated the activity of the provisional administration1 appointed to manage Public bank (JSC) (hereinafter, the Bank).
From the moment the provisional administration was appointed to the Bank, its work was obstructed2 by the Bank’s executives.
The provisional administration detected that the activities of the Bank's former management and owners had signs of actions aimed at the preferential satisfaction of certain creditors’ claims and withdrawing liquid assets through the sale of property and precious metal coins, as well as through lending to borrowers incapable to fulfil their obligations. The provisional administration filed complaints to the law enforcement bodies regarding the facts revealed.
The provisional administration’s objective was to recover overdue debt. Specifically, it sent recovery claims and letters before action to borrowers, sureties and pledgers, as well as filed recovery suits to courts.
According to the provisional administration, the Bank’s assets amounting to approximately 0.6 billion rubles are insufficient for it to meet its obligations to creditors totalling 1.14 billion rubles.
On 30 October 2020, the Arbitration Court of the City of Moscow recognised the Bank as insolvent (bankrupt) and initiated a bankruptcy proceeding against it.
The State Corporation Deposit Insurance Agency was appointed as receiver.
More details about the work of the provisional administration are available on the Bank of Russia website.
Settlements with the Bank’s creditors will be made in the course of the bankruptcy proceeding as the Bank’s assets are sold (enforced). The quality of these assets is the responsibility of the Bank’s former management and owners.
1 The provisional administration was appointed by Bank of Russia Order No. OD-1175, dated 24 July 2020, following the revocation of the banking licence from the Bank.
2 Press release of the Bank of Russia, dated 7 October 2020; press release of the Bank of Russia, dated 29 October 2020.
3 Press release of the Bank of Russia, dated 8 October 2020.
The reference to the Press Service is mandatory if you intend to use this material.
16.11.2020 17.00.00