January 24 (SeeNews) - Montenegrin troubled lender Atlas Banka's [MNG:ATBA] interim administrator has invited shareholders to subscribe for a 22 million euro ($24.9 million) capital hike to rescue the bank and allow its normal operation, it said.
The bank will issue 88,710 ordinary shares with a nominal value of 248 euro apiece, to be subscribed by shareholders with pre-emption rights, Atlas Banka said in a notice posted on its website last week.
The transaction will be considered successful if the entire issue is subscribed for within 35 days after the invitation publication on January 16, the interim administrator said in the notice.
Earlier this month, Montenegro's central bank said the interim administrator has determined that the further continuation of the bank's operations would be possible after executing a recapitalisation.
The owner of Atlas Banka, Dusko Knezevic, said on Monday he is ready to participate in the recapitalisation of the lender. Knezevic, for whom a national arrest warrant was issued by the Montenegrin authorities, announced earlier that he is in London would not return to Montenegro. A procedure is underway to issue a red international arrest warrant for Knezevic, Montenegrin media reported.
In December, Montenegro's central bank said it was placing Atlas Banka and Invest Banka [MNG:IBMN] under its temporary administration due to their poor financial condition, after audit results showed that the capital of the two lenders did not meet the minimum risk requirements.
A 45-day moratorium on all payments to depositors and other creditors by Atlas Banka and Invest Banka was imposed on December 10.
The combined market share of the two banks is just above 6%, central bank governor Radoje Zugic said in December. A total of 16 banks are active in Montenegro.
($ = 0.8820 euro)