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| Tomas Pilipavicius |
30 January 2012
More than 400 small investors join group lawsuit in Lithuania asking money deposited for unregistered shares of bankrupt bank Snoras
Vilnius, January 30. Small investors, united by Investors Association (Lithuania), ask the court to return money paid for unregistered share issue of bankrupt Lithuanian bank Snoras. On January 30, 2012, 410 investors submitted a case to the Vilnius Regional Court, asking back EUR 2.4 million.
“After successful process uniting investors seeking higher price in Lifosa sqeeze-out process, we managed to gather even larger group, which asks for the return of deposited funds for unregistered Snoras shares. We hope that the group action will facilitate more efficient court process, because instead of 400 claims there is only one – with a record number of applicants in Lithuania”, - said Investors Asociation (Lithuania) Board Member Tomas Pilipavicius.
Investors also ask the court to apply for interim measures and seize the money paid for subscribed, but unregistered shares.
"Under the Lithuanian Banking Act, after the subscription of shares money is deposited in an special account opened at another credit institution and may be used by the bank only after registering amendments to the Statutes relating to the share capital increase. This means that cash paid by investors does not belong to Snoras assets and must be returned to investors, "- said the Investors Association Member of the Board and the AAA Baltic Service Company attorney Daiva Usinskaite-Filonoviene.
According to her, after initiation of the process Snoras bankruptcy administrator should refrain from taking action on small investors' money.
Snoras shareholders decision to issue new EUR 110 million shares was adopted on 21th of December 201. Most of the new were subscribed by former Snoras majority shareholders Vladimir Antonov (EUR 58.1 million) and Raimondas Baranauskas (EUR 21.6 million) and a fund managed by Jubilee Financial Products (EUR 23.2 million).
Small investors subscribed to approximately EUR 7.3 million worth of shares.
On November 16, 2011, the Lithuanian government seized Snoras shares from private owners, and on November 22, the central Bank of Lithuania refused to issue a permit to register Snoras amendments to the Statutes of the capital increase. On December 7, 2011 Snoras was declared bankrupt by the court.
Russian businessman Vladimir Antonov and Lithuanian businessman Raimondas Baranauskas are accused of an asset-stripping operation that is is the alleged cause of the collapse of Snoras.
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