Sorainen Latvia is representing foreign creditors from different jurisdictions (EU and non-EU) in the liquidation of Trasta Komercbanka, a credit institution (bank) registered in Latvia. Our work is related to advising creditors on the liquidation proceedings, drafting and filing creditors’ claims, liaising with the liquidator, resolving issues related to payout within the deposit guarantee scheme and advising creditors on drafting and submitting additional documents requested by the liquidator.
Liquidations of credit institutions are relatively rare in Latvia and usually only marginal market players among credit institutions undergo liquidation, so that practice in this field is very limited or inaccessible. In addition, legal regulation governing liquidation of credit institutions is vague and leaves much room for interpretation. Hence, very little expertise is available in the legal market.
Another factor which makes this case more sophisticated is that one of the reasons why Trasta Komercbanka was deprived of its banking license and liquidation proceedings commenced was severe deficiencies in the AML/CTF field. Accordingly, the liquidator is carrying out separate AML inspections in respect of creditors, requesting them to present a substantial amount of information and documents.