The court in Prague allowed the administrator of Sberbank to sell the loans of Česká spořitelna
Update: 12/14/2022 10:46 AM
Issued by: 14/12/2022, 10:23
Prague – The Municipal Court in Prague allowed the insolvency administrator of Sberbank CZ, Jiřina Lužová, to sell the loans of the bank Česká spořitelna. This follows from the information published in the insolvency register. The Czech National Bank and the Office for the Protection of Economic Competition have already agreed to the sale of the savings bank loans, so according to Lužová, there is nothing preventing the signing of the purchase agreement.
After signing with Česká spořitelna, the purchase contract will be published in the insolvency register. After that, a three-month period will begin, during which the creditors of Sberbank CZ will have the opportunity to challenge the validity of this contract.
“Only then can the transaction be settled and the money for the sale of the Sberbank CZ loan portfolio paid to the buyer. If the purchase agreement with Česká spořitelna is signed before the end of the year, the purchase price will not be paid before March 2023. The migration of Sberbank CZ clients to the Česká spořitelna portfolio will begin only after payment of the purchase price,” said Lužová earlier.
The purchase price of the loan portfolio is 41.053 billion crowns. The offered purchase price is based on a bidding process in which several interested parties participated. Česká spořitelna’s offer, together with cash and the expected proceeds from the monetization of other assets of Sberbank CZ, should be sufficient for 100% satisfaction of creditors in the first group (Guarantee system) and in the second group (natural persons and small and medium-sized companies) and with a high probability of more than 90% satisfaction of creditors in the third group (regions, cities, municipalities and large companies).
For credit clients of Sberbank CZ, nothing has yet changed. Until the successful settlement of the sale, they are still obliged to pay their obligations as before. The rest of the loan portfolio and other assets of Sberbank CZ, which are not part of the contract for the future purchase of the loan portfolio concluded with Česká spořitelna, are planned by the insolvency administrator replacing the other banks and non-banking companies at the beginning of 2023.
The Prague Municipal Court declared Sberbank CZ bankrupt at the end of August this year. At the beginning of May, the CNB legally revoked the bank’s banking license, and the Prague Municipal Court then sent the bank into liquidation. The CNB already started the steps to revoke the license on February 28. The reason was the deterioration of the situation of Sberbank CZ due to the outflow of deposits after the start of the Russian invasion of Ukraine.