Activity of provisional administration to manage Bank Prohladnyj LLC terminated
On 17 March 2021, the Bank of Russia terminated the activity of the provisional administration1 appointed to manage credit institution Bank Prohladnyj LLC (hereinafter, the Bank).
The provisional administration established that the activities of the Bank’s former management and owners had signs of actions aimed at withdrawing liquid assets through cession agreements.
The provisional administration and the Bank of Russia have filed complaints to the law enforcement bodies regarding the facts revealed.
According to the assessment of the provisional administration, the value of the Bank’s assets is insufficient to fulfil its obligations to creditors.
On 1 March 2021, the Arbitration Court of the Kabardino-Balkar Republic recognised the Bank as insolvent (bankrupt) and initiated a bankruptcy proceeding against it. The State Corporation Deposit Insurance Agency was appointed as a 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-1641, dated 9 October 2020, due to the revocation of the banking licence from the Bank.
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17.03.2021 17.00.00