Banks, Financial Services, Investments, Legislation, Lithuania

The department, part of the Economy Ministry, said that Kaunas-based UBIG, at its own request, had been placed on a list of companies unable or unwilling to meet their obligations.

UBIG is a sister company of Ukio Bankas AB, a lender that Lithuania’s central bank closed in February for risky lending to related parties.

UBIG owns 79% of Edinburgh-based Hearts as well as sport, aluminum and real-estate projects in several countries.

As reported, Kaunas County Court after considering the applicant's Lithuanian bank statement in early May opened bankruptcy proceedings against bank Ukio Bankas.

Following the ruling of the court, company Valnetas was appointed as bankruptcy administrator.

As to the background, on February 12, 2013, the Bank of Lithuania restricted activities of Ukio Bankas, with the purpose of protecting public, depositors and other clients' interests. Temporal administrator was appointed. Once the bank was announced insolvent it was decided for the first time to resolve such issue of a bank by transferring a part of assets and liabilities to another bank.