OREANDA-NEWS.  May 17, 2012. Within three days after the court decision in accordance with the requirements of Section 186 of the Credit Institutions Law, the Administrator shall publish the announcement on the commencement of the bankruptcy procedure in "Latvijas Vestnesis" and other publications inviting creditors to report their claims within three months of the date of publishing the announcement, reported the press-centre of Latvijas Krajbanka.

At the moment, intensive work is being done to analyse and prepare information on the credit portfolio required to commence the sales process of the portfolio. There are approximately 17,000 borrowers in the Bank. The sales strategy of the portfolio is being developed in consideration of the potential range of buyers, and the strategy prescribes dividing the portfolio into more uniform portfolios that might evoke higher buyers' interest and result in higher sales price. The Administrator expects the preparation process to take several months. As a result, the sales process may be commenced in the autumn of 2012.

The Administrator has already commenced the activities prescribed in the law to prepare for the sales of the shares of IBS Renesource Capital. According to current plans, the auction may take place during the approaching weeks.

Also, work has been commenced to prepare for the auctions of separate assets and asset groups such as branches of the Bank, ATM, shares of several subsidiaries, and investments and overtaken real estate properties. The auctions of these assets, which will be announced separately, are expected to take place within the next two or three months.
The Bank owns premises of 21 branches: 14 in Riga and 7 in regions. 65 of 213 ATMs owned by the Bank have been dismantled and located in the warehouse. Approximately 50% of the remaining 148 ATMs are located in Riga and in the suburbs of Riga. The ATMs may be entered for auction as separate units or together with their respective locations. The Bank owns 14 passenger cars and 7 specialized encashment vehicles.

The Administrator would like to emphasize that the commencement of the bankruptcy procedure does not alter the Bank's relationship with its debtors, neither does it change the debtors' responsibility for settling their liabilities against the Bank. Currently, only 56% of all the borrowers representing 38% of the total loan portfolio meet their liabilities without delay. The Administrator has already approached the dishonest borrowers using all the possible means prescribed in the agreement in order to secure repayment of the loans and recover funds for the benefit of the creditors. At the same time the Administrator is open to constructive negotiations and seeking acceptable solutions with the honest borrowers who experience repayment difficulties or would like to refinance their liabilities in another credit institution.