REPORT OF THE BANKRUPTCY ADMINISTRATOR

Transcription

1 REPORT OF THE BANKRUPTCY ADMINISTRATOR TO THE CREDITORS OF AKCINĖ BENDROVĖ BANKAS SNORAS (BANKRUPT) FOR THE PERIOD ENDING 31 DECEMBER April 2016 Vilnius

2 TABLE OF CONTENTS AND USED ABBREVIATIONS Table of contents Disclaimer...3 Introduction...4 Overview of key events and results of the Period...5 Income...6 Property sales during the Period...7 Operational payments...8 Non-operating expenses...9 Payments to creditors...10 Assets of the Bank...11 Administration report of the Bank...12 Litigation...13 Abbreviations used in the Report Report Bankruptcy Administrator or BA Snoras or Bank This report prepared by the bankruptcy administrator in order to inform the creditors of AB Bankas Snoras (bankrupt) about the progress of the bankruptcy procedure and to ensure transparency of the process. UAB Valnetas (private limited liability company), legal entity code , registered office at Kęstučio g. 58-3, Kaunas. Akcinė bendrovė bankas SNORAS (bankrupt), legal entity code , registered office at A. Vivulskio g. 7, Vilnius. Period Reporting period from 1 October 2015 to 31 December 2015 VP Securities 2

3 DISCLAIMER UAB Valnetas, the Bankruptcy Administrator of akcinė bendrovė bankas SNORAS, has prepared this Report in order to inform the creditors of Snoras about the progress of the bankruptcy procedure and to ensure transparency of the process. The information contained in this Report is based on the information the Bankruptcy Administrator had on 31 December 2015, except for cases when this Report expressly indicates otherwise. Given the ongoing investigations and possible revision of the information and data contained in the Report, the information provided in this Report should not be regarded as definitive or conclusive and may be subject to further review, supplement and adjustment by the Bankruptcy Administrator. No representation, warranty or other commitment is given in respect of the accuracy and completeness of the information contained in this Report. No party may rely on the contents of this Report or the information contained in it, whatever the purpose of its use. Snoras, the Bankruptcy Administrator, Snoras employees, agents, advisers and the committee of creditors are not responsible or liable for the information contained in this Report or for reliance by any party on it. Please note that figures in this Report may include minor rounding differences. 3

4 INTRODUCTION Period Website Background key events This Report to the creditors of Snoras was prepared as a follow-up of the report on events that occurred until 30 September The Report gives a brief description of the bankruptcy process during three months, i.e. the Report informs about events and results achieved in the period from 1 October 2015 to 31 December Periodic updates and publications of information relevant to the creditors of Snoras are available on Snoras website at On 16 November 2011, the Bank of Lithuania suspended the activities of Snoras; On 24 November 2011, the Bank of Lithuania passed a resolution on initiating bankruptcy proceedings regarding the bank s insolvency; On 7 December 2011, the Vilnius Regional Court passed a ruling on initiating bankruptcy proceedings against Snoras. Pursuant to this ruling, Neil Hunter Cooper was appointed the bankruptcy administrator of the Bank; On 22 August 2012, the Vilnius Regional Court passed a ruling whereby Snoras was declared bankrupt and to be liquidated; the ruling of the Vilnius Regional Court came into force on 30 August 2012; On 28 October 2014, the Vilnius Regional Court passed a ruling approving the resignation of Snoras bankruptcy administrator, Neil Hunter Cooper, as the bankruptcy administrator, and appointing UAB Valnetas as new bankruptcy administrator of Snoras. The 28 October 2014 ruling of the Vilnius Regional Court came into force on 5 November Upon coming into force of the ruling, UAB Valnetas took over the functions of Snoras bankruptcy administrator. 4

5 OVERVIEW OF KEY EVENTS AND RESULTS OF THE PERIOD AREA OF ACTIVITY EVENTS AND RESULTS During the Period, the sale of the loan portfolio of Snoras to UAB Baltijos Kredito Sprendimai was completed. The acquisition of the loan portfolio was financed by a consortium of international investors, consisting of investment funds registered in Luxembourg and Deutsche Bank AG. The loan portfolio was sold at the price not less than EUR 169,685,000. During the Period, the process (tender procedure) of sale of the Cayman loan portfolio (consisting of 25 corporate and retail loans issued mostly to clients in Russia and secured by real property located in Russia) continued; decisions on the sale of the portfolio should be taken in the first half of During the Period, the process of sale of the majority of remaining loan portfolio of Snoras has been initiated. Assets Sales of Snoras movable assets, in the aggregate, amounted to EUR 133, during the Period. On 20 November 2015, free sales of real property was published, during which 172 real property objects were offered for sale. By the end of the term for submission, the offers in respect of 16 real property objects (total value: approx. EUR 1.3 million) were received. According to the free sales procedure, for the most part of property objects the sale is continued by increasing the price. During the Period, the process of sale of Snoras property (villa Zofia) in Nice, France, was started. The initial value of the property is EUR 1.8 million. During the Period, the Bank sold the bonds in Icelandic bank LBI hf. (insolvent) at the price of USD 181,237 (EUR 198,450). The bonds were sold to the highest bidder, a financial company established in London, at a public auction. Litigation Administration Payments to creditors Liquidation proceedings against AB Snoro Turtas and bankruptcy proceedings against AB Snoro Įmonių Grupė commenced during the Period. During the Period, the Supreme Court of Lithuania passed a ruling recognising deposit certificates as deposits and declared that such certificates are subject to deposit insurance. Settlement agreements are being concluded in the court proceedings concerned. 173 settlement agreements were concluded until the date of this Report. During the Period, the number of Snoras employees decreased by 33 employees, which led to reduction in the monthly payroll fund by 45%. During the Period, payments to second ranking creditors amounted to EUR 105 million. 5

6 INCOME EUR 000 Income Total as of 31 Decembe r 2013 Total as of 31 December 2014 QI 2015 QII 2015 QIII 2015 During the Period From the start of the bankruptcy process till the end of the Period 94,16% Rental income 2,228 2, ,580 Interest on VP (securities) and on cash balances held 3,728 8, ,595 Interest on loans and charges 42,454 54,331 2,731 3,435 2,974 1,324 64,795 Total income 48,410 64,736 3,170 3,644 3,034 1,386 75,970 Disposal of assets Loan repayments 264, ,561 7,776 6,166 8,190 4, ,820 Proceeds from sales of loan , ,499 Funds with financial institutions 163, , ,670 Financial assets 56,169 56, ,871 Investments in subsidiaries 5,096 5, ,096 Fixed assets and other assets 5,095 34, ,501 2, ,391 Cayman loan repayments (transfer from frozen account) 10,858 10, ,106 Funds awarded in litigation , ,869 0,15% 0,65% 0,02% 3,75% 0,06% 1,20% Rental income Interest on loans and charges Interest on securities and on cash balances held Loan repayments Fixed assets and other assets Financial assets Proceeds from sales of loan Total cash receipts 553, ,688 11,156 22,927 13, , ,293 6

7 PROPERTY SALES DURING THE PERIOD The process of sale of Snoras property is continuing. Properties no longer necessary in the activity of Snoras are included in the list of objects to be offered for sale. Real property sold during the Period Apartment at Architektų g , Šiauliai Agricultural land plot at Aukštelkės village, Šiauliai district Apartment with garage at Birutės g , Vilnius Land plot with a building at Arimų Sodų g. 2, Vilnius Agricultural land plot at Gvildžiai village, Klaipėda district Land plot at Mickai village, Klaipėda district Parking space No. 112 at Laisvės pr. 77F, Vilnius Parking space No. 113 at Laisvės pr. 77F, Vilnius Parking space No. 114 at Laisvės pr. 77F, Vilnius Parking space No. 115 at Laisvės pr. 77F, Vilniuje Agricultural land, Imastu village, Estonia Movable property sold during the Period Sale price (EUR) 263 movable objects 90, Car Porshe 911 Carrera 43,000 During the Period, ten real property objects in Lithuania (total value: EUR 467,764.41) and one real property object in Estonia (value: EUR 136,300) were sold. The total value of movable property sold during the Period is EUR 133, During the Period, to ensure the most efficient disposal of movable property of the Bank, such property was offered for sale at an internet auction on ebay. Electronic devices and computer equipment used in the activity of the Bank were offered for sale through one of the world s most popular sales platforms. 7

8 OPERATIONAL PAYMENTS EUR 000 Operating expenses From the start of the bankrup tcy process till 31 Dec QI 2015* QII 2015 QIII 2015 During the Period Total from the start of the bankruptc y process Personnel 9,794 3,975 3, ,781 EUR Operating expenses Premises 2, ,443 Assets 1, ,188 Communicatio ns and IT 2,572 1,707 1, , Security and insurance ,290 Other expenses ,080 0 QI 2015* QII 2015 QIII 2015 During the Period Total operating expenses 17,348 7,824 6,484 1,236 1, ,006 * Financial data provided until the end of 2014 were estimated or recorded on a cash basis. From 2015, financial information contained in the Report has been estimated on an accrual basis, i.e. expenses are recognised in the period to which they relate regardless of when the payment is made. 8

9 NON-OPERATING EXPENSES EUR 000 Non-operating expenses From the start of the bankruptcy process till QI 2015* QII 2015 QIII 2015 During the Period Total from the start of the bankruptcy process Expenses for consultants and BA 28,076 12,674 7,432 1, ,257 * Financial data provided until the end of 2014 were estimated or recorded on a cash basis. From 2015, financial information contained in the Report has been estimated on an accrual basis, i.e. expenses are recognised in the period to which they relate regardless of when the payment is made. Expenses for consultants and BA QI, 2015 QII, 2015 QIII, 2015 During the Period Total expenses for consultants and the BA are slightly higher compared to the previous period, due to variations in scope of work and because of the fact that during the Period the remaining (outstanding) part of variable remuneration was paid to the Bankruptcy Administrator for the year of 2015 upon achievement of indices of payments to creditors. 9

10 PAYMENTS TO CREDITORS EUR 000 Payments to first ranking creditors Payments to second ranking creditors Total payments to creditors From the start of the bankruptcy process till QI 2015 QII 2015 QIII 2015 During the Period Total from the start of the bankruptcy process 2, , , ,114 30,000 20,000 20, , ,722 2, , ,114 30,000 20,000 20, , ,433 Claim settlement ranking order Total amount Quantity of approved claims Approved outstanding amount (EUR 000) , ,666 15, , ,346 15,715 1,202,874 In 2015, the total amount paid to the creditors was EUR 175 million. During the Period, EUR 105 million were paid to the second ranking creditor. At the end of the Period, VĮ Indėlių ir Investicijų Draudimas with the second ranking financial claim constituting 29.82% of the total approved financial claims was the largest creditor of the Bank. 10

11 ASSETS OF THE BANK The net carrying value of Snoras remaining assets as on 31 December 2015 following a review of recent provisions: Asset groups 7 December December March June September 2015 At the end of the Period Total assets (EUR 000): 1,133, % 377, % 339, % 330, % 312, % 105, % Cash and cash equivalents: 253,253 22% 39,984 11% 18,024 5% 18,622 6% 10,259 3% 11,738 11% cash in accounts 201,874 18% 26,340 7% 9,591 3% 13,718 4% 5,333 2% 6,790 6% other financial investments 51,379 5% 13,644 4% 8,433 2% 4,904 1% 4,926 2% 4,948 5% Loan portfolio 745,371 66% 286,948 76% 270,581 80% 261,505 79% 253,445 81% 50,203 47% Investments in subsidiaries 1,987 0% 174 0% 174 0% 174 0% 174 0% 174 0% Real property 127,415 11% 42,863 11% 42,826 13% 41,860 13% 40,222 13% 34,726 33% Other assets 5,354 1% 7,153 2% 7,569 2% 8,765 2% 8,410 3% 9,036 9% On 2 December 2015, the process of sale of the Snoras loan portfolio was completed. Nevertheless, the remaining Snoras loan portfolio still accounts for the major part of the Bank s assets. Property structure at the end of the Period 9% 6% 5% 33% 47% pinigai sąskaitose kitos finansinės investicijos Paskolų portfelis Investicijos į dukterines įmones Nekilnojamasis turtas 0% Kitas turtas 11

12 ADMINISTRATION REPORT OF THE BANK All branches of the Bank were closed during the Period. On 1 January 2016, Snoras still had 48 employees, i.e personnel. During the Period, the number of employees decreased by 33 employees (32 personnel). The monthly payroll fund decreased by EUR 80,000 respectively , ,75 45,75 QI, 2015 QII, 2015 QIII, 2015 QIV, 2015 Decrease of the number of personnel in

13 LITIGATION Deposit certificate cases The Supreme Court of Lithuania has held that deposit certificates are equivalent to deposits and deposit insurance should apply to such certificates. In the light of the foregoing, the Bank has transferred all relevant information on the acquirers of Bank s deposit certificates to VĮ Indėlių ir Investicijų Draudimas. Pre-trial investigation Since November 2011, the pre-trial investigation has been performed regarding misappropriation and embezzlement of high-value assets. In July 2015, the Bank brought a civil action in the relevant case. During the Period, the Bank actively cooperated with the pre-trial investigation institutions to ensure that the civil action would be upheld. Switzerland The Bankruptcy Administrator, in cooperation with Swiss pre-trial investigation authorities, is continuing to collect evidence and assess the possibility of making claims against third parties requiring compensation for damages. Civil action against V. Antonovas and A. Baranauskas In November 2015, at the Bankruptcy Administrator s request the Commercial Court of the Queen s Bench Division of the High Court of Justice (U.K.) passed a decision to repay GBP 4.5 million to the Bank from the GBP 5 million deposit paid by the Bank for legal costs. 13