Airport, Banks, Financial Services, Latvia, Legislation, Transport

As reported, on November 30, 2011, the Transport Ministry, using its pre-emptive right, bought 47.2% of airBaltic shares that previously belonged to BAS, but were pledged as security at Krajbanka, writes LETA.

airBaltic shares were sold for LVL 224,000, but this transaction was contested by BAS. As a result, Latvian Central Depository banned any operations with these shares. BAS appeal is now in jeopardy because on February 6, when the Riga District Court turned down an insolvency petition against BAS, Atlantijas Biroji fully acquired BAS from its previous owner Bertolt Flick and Taurus Asset Management Limited (Taurus).

Flick though points out that he is not aware of such changes at BAS. He believes that the attempt to take over BAS, the main creditor of airBaltic, may have been carried out in order to halt all legal proceedings involving BAS.

This could backfire on the state, the Transport Ministry and the Financial and Capital Market Commission, and could result in legal proceedings regarding LVL 1 million compensation if the Commission decides to launch liquidation of Krajbanka.

An expert, who wished to remain anonymous, told Dienas Bizness that BAS takeover could be an attempt to avert possible insolvency claims against airBaltic.