Intensive selling of PNB Banka’s assets is launched


Nearly a year since PNB Banka has been declared insolvent, the intensive selling of its assets is launched. Over this period the management rights over the 2nd pension pillar investment plans of state funded pension scheme have been sold to CBL Asset Management, a subsidiary of Citadele banka, the bank has partnered with Latio real estate agency and Conventus consultancy firm, in order to get PNB Banka’s property sold at the highest possible prices to recover as much funds as possible for refund of creditors’ claims.


“The 2nd pension pillar investment plans was one of the most socially sensitive, hence most important bank’s asset; therefore, I am pleased that we have managed to find the best price offer through the auction and transfer the management rights over the plans to CBL Asset Management, the subsidiary of Citadele banka. As a result of this transaction the bank will not only gain funds necessary to settle its liabilities, but will also reduce the costs of managing its current assets, thus enabling it to commit more money on refunding creditors’ claims,” the insolvency process administrator of PNB Banka Vigo Krastiņš said.


The PNB Asset Management’s investment plans had 66 493 participants with accrued assets worth EUR 110 million, which were managed in three 2nd pension pillar investment plans, namely, PNB conservative investment plan “DAUGAVA”, PNB balanced investment plan “VENTA”, and PNB active investment plan “GAUJA”. As of this date, the agreement with CBL Asset Management is concluded and the takeover of the management rights is started. The Financial and Capital Market Commission and the Competition Council are informed about such takeover and it is also agreed with the State Social Insurance Agency. The takeover is planned to complete by the end of the year.


“Another largest sale of PNB Banka’s assets is related to the real estate objects within the bank’s real estate portfolio. Usually, during a company’s insolvency proceedings the real estate is sold in haste and at the price of an enforced sale, i.e. lower than the average market price. However, together with Latio real estate agency we have arrived at a cooperation model, which provides an opportunity for potential buyers to inspect all real estate objects on-site, evaluate their condition, review the related documents, and then make the highest price offer possible. This again provides an opportunity to attract a wider range of buyers, sell the bank’s real estate at higher prices, and recover as much funds as possible to refund the creditors’ claims,” Mr. Krastiņš said.


The information on the bank’s real estate offers will be published on PNB Banka’s and Latio’s websites. Whereas, the bank’s movable property, fixed assets, and other inventory will be sold in cooperation with the consultancy firm Conventus via its auction and sales website, which will also facilitate better prices for certain movable property.