Kyiv's business court has confirmed the unlawfulness of transferring rights to property under credit agreements for the amount of UAH 1.3 billion by Delta Bank (Kyiv) to companies affiliated with the electronics and household appliances retailer, the Individuals' Deposit Guarantee Fund has reported on its website.

According to the report, before interim administration was introduced to Delta Bank the bank signed an agreement on using rights to property as collateral for credits of over UAH 830 million issued to individuals. The agreement secured the observation of the bank's liabilities to Flamenco company. The assessment of the collateral by the parties was 60% less than the cost of these rights to property. The similar agreement was also signed with SAV-Distribution on assigning the rights under credit agreements signed by the bank with individual borrowers for the amount of over UAH 560 million. It was also assessed 60% less than the real cost of the rights.

The fund said that the court rulings that are now effective confirmed the fact that that assets transferred to Delta Bank as collateral belonged to the bank, which allows selling them without any obstacles. The raised funds will be used to pay off debts under claims of creditors.

Delta Bank was founded in 2006. Its largest shareholders in early 2015 were Mykola Lahun (70.6059%) and Cargill Financial Services International, Inc. (29.3941%). On October 2, 2015 the National Bank of Ukraine decided to liquidate the bank. Its liquidation expanded until October 2019.