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Montenegro's c-bank launches insolvency proceedings against Atlas Banka

Author Radomir Ralev
Montenegro's c-bank launches insolvency proceedings against Atlas Banka Source:

PODGORICA (Montenegro), April 8 (SeeNews) - Montenegro's central bank launched insolvency proceedings against troubled Atlas Banka [MNG:ATBA] after a public call for the recapitalisation of the lender drew no bids, the central bank said.

All creditors of Atlas Banka are invited to present evidence of their claims within 30 days after the publication of the insolvency notice in Montenegro's State Gazette, the central bank said in a statement posted on the website of the troubled lender on Friday.

Earlier this month, the bank's interim administrator, Tanja Teric, said no investors have subscribed for any of the 88,710 new ordinary shares of Atlas Banka under the public call for recapitalisation until the expiry of the deadline set on March 29.

On March 11, the interim administrator launched a public call for a 22 million euro ($24.6 million) recapitalisation, inviting investors who are not existing shareholders of Atlas Banka to subscribe for shares from the new issue.

Montenegro's central bank placed Atlas Banka and Invest Banka [MNG:IBMN] under its temporary administration in December due to their poor financial condition, after an audit showed that the capital of the two lenders did not meet the minimum risk requirements.

In January, the central bank said it has decided to revoke the banking licence of Invest Banka and launch bankruptcy proceedings against it, after the interim administrator found that the bank's financial position is negative, its solvency ratio is below one-quarter of the prescribed level and its liabilities exceed its assets.

($ = 0.892814 euro)