Luxembourg Commercial Court has decided to lift the previously imposed protection mechanism for ABLV Bank Luxembourg, S.A. and start liquidation process of the bank. The appointed liquidators of ABLV Bank Luxembourg, S.A. shall be the independent administrators who have been supervising the bank until now – attorney Alain Rukavina from Rukavina Avocats law firm and Éric Collard from DELOITTE Tax & Consulting SARL.

According to the court ruling, ABLV Bank Luxembourg creditors can lodge their claims by 10 January 2020 (inclusive). The decision on commencement of liquidation and lodging the creditors’ claims shall be published in digital mass media and newspapers Luxemburger Wort, Tageblatt, and Financial Times.

As reported earlier, given significant financial losses over the extended period of time and in order to protect the interests of the depositors and shareholders, ABLV Bank Luxembourg, SA has decided to agree to start the judicial liquidation process. According to local legislation, Luxembourg’s financial supervisory authority, Commission de Surveillance du Secteur Financier (CSSF), has filed an application with the Luxembourg Commercial Court in order to put ABLV Bank Luxembourg, S.A. into judicial liquidation.

On 19 February 2018 to put the bank under the protection of the suspension-of-payments status. On 23 February 2018, the Single Resolution Board decided that ABLV Bank in Riga and ABLV Bank Luxembourg should be liquidated in accordance with the local legislation and on 26 February 2018 the Luxembourg Resolution Board decided upon the liquidation of ABLV Bank Luxembourg. Accordingly, on 27 February the CSSF filed a double application asking the Luxembourg Commercial Court either for the liquidation of the bank or for the suspension-of-payments regime. On 9 March 2018, Luxembourg Commercial Court dismissed the request about the liquidation of ABLV Bank Luxembourg considering that there were not enough evidence provided about the poor financial standing of the bank. The court however admitted the second request and ruled to appoint two external administrators and keep the bank under the protection of the suspension-of-payments status that has been extended three times.

Right now the bank in Luxembourg is capable of covering all the liabilities to its clients to 100%. Its financial standing is stable and complies with all the liquidity and other indicators set forth by the regulator.

Currently there are 103 active accounts of individuals and 228 active accounts of legal entities with ABLV Bank Luxembourg. The volume of the estimated liabilities of the bank before its clients is amounting approximately to EUR 127 million, before Luxembourg Deposit Guarantee Fund – EUR 7 million, and other liabilities – about EUR 2 million, while the amount of its assets exceeds EUR 146 million.

Already since March 2019, clients of ABLV Bank Luxembourg can receive their guaranteed compensations up to EUR 100,000; these disbursements are carried out in cooperation with Luxembourg Deposit Guarantee Fund. By now 139 clients have already received guaranteed compensations of total amount exceeding EUR 7 million.

Further course of the liquidation as well as steps to be taken for satisfying creditors’ claims shall be determined by the liquidators of the bank appointed by the Luxembourg Commercial Court. We invite all clients to follow the latest news on the bank’s website www.ablv.lu and in the Internetbank