Court bans Deposit Guarantee Fund from making proposals on liquidation of Bank Financial Initiative
The Kyiv Economic Court, in response to a claim by the potential buyer of insolvent Bank Financial Initiative Perusta Constructions, has banned the Individuals' Deposit Guarantee Fund from making proposals to the National Bank of Ukraine (NBU) on the liquidation of the financial institution and revoking its banking license.
"The petition of Perusta Constructions to satisfy the claim has been partially allowed... Deny the directorate members of the Individuals' Deposit Guarantee Fund and other entities to submit proposals to the National Bank and decide on the liquidation of Bank Finance Initiative," reads the Economic Court ruling of October 15, 2015 which has been posted on the website of the State Court Rulings Register.
In addition, the decree prohibited any changes being made to the method of removing the bank from the market and on making decisions on recognizing any other way this could be achieved, except for the creation of a transition bank and its sale to an investor together with the assets and liabilities of the insolvent bank and the further liquidation of the insolvent bank.
According to the ruling, Perusta Constructions filed a lawsuit against the Individuals' Deposit Guarantee Fund asking to allow the company to participate in the tender among investors and recognize Perusta Constructions as the winner.
The court has scheduled further consideration for October 29.