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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 19:07

Krasovickis files insolvency for Reverta

BC, Riga, 19.11.2014.Print version
Former Parex banka shareholder Viktors Krasovickis has filed an claim in Riga City Northern District Court about Reverta’s insolvency, according to information published on the Insolvency Administration's website, informs LETA.

JS Reverta is the renamed JS Parex banka, a "solutions" bank since August 2010 – without a banking license.

 

The insolvency process case was initiated on November 11. The court told LETA that the insolvency process case will be reviewed by Judge Didzis Melbardis on November 26.

Reverta spokeswoman Marita Ozolina told LETA that Reverta has observed all of its contractual obligations.

 

"For this reason, Krasovickis' claim is absurd and unjustified. Reverta is already carrying out all the necessary steps in order to prove this," said Ozolina, pointing out that a false insolvency process is a felony.

 

The bank's former controlling shareholders – Krasovickis and Valerijs Kargins, are currently involved in several lawsuits. Riga Regional Court is currently reviewing a suit filed by Reverta and the Privatization Agency, attempting to retrieve EUR 141.6 million from the two bankers.

 

Reverta and the Privatization Agency are claiming EUR 17.07 million in damages, and trying to collect compensations in the amount of EUR 117.7 million, as well as liquidated damages in the amount of EUR 6.4 million.

 

As reported, at the end of 2008, joint-stock Parex banka was the second largest bank in Latvia with total assets of EUR 4.9 billion. It had been very active in the Commonwealth of Independent States, which was severely hit by the financial crisis. This resulted in a loss of confidence in Parex and a subsequent run on the bank in 2008, with a 36% fall in deposits as compared to end 2007.

 

In November 2008, Latvia notified a package of rescue measures in favor of Parex. The Commission temporarily approved the measures in November 2008 based on Latvia's commitment to submit a restructuring plan.

 

In May 2009, the Commission approved amendments to one of the measures. In July 2010, Latvia notified a restructuring plan for Parex, which the Commission approved in September 2010. The plan included a split of Parex into a newly established "good" bank, Citadele banka, taking over all core and some non-core assets, and a "bad bank" (Parex, later renamed Reverta), which kept the remaining non-core and non-performing assets.

 

In August 2012, the Commission approved amendments to the restructuring plan.






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