TGS Baltic provided legal assistance to the European Central Bank on Latvian law matters related to appeals of the orders of the General Court of European Union dismissing as inadmissible actions for annulment of the acts declaring ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, as failing or likely to fail.

17.05.2021 TGS Baltic provided legal assistance to the European Central Bank on Latvian law matters related to appeals of the orders of the General Court of European Union dismissing as inadmissible actions for annulment of the acts declaring ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, as failing or likely to fail.

TGS Baltic provided legal assistance to the representatives of the European Central Bank (ECB) on certain Latvian law matters related to rejection of the appeals of ABLV Bank AS and Mr. Ernests Bernis, Mr. Oļegs Fiļs, OF Holding SIA and Cassandra Holding Company SIA requiring setting aside of the orders of the General Court of the European Union of 6 May 2019, ABLV Bank v ECB (Case C‑551/19 P), and the order of 6 May 2019, Bernis and Others v ECB (Case C‑552/19 P), by which the General Court dismissed as inadmissible their actions for annulment of the acts of the ECB of 23 February 2018 by which the ECB declared that ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, were failing or were likely to fail.

TGS Baltic provided legal assistance to the representatives of the European Central Bank (ECB) on certain Latvian law matters related to rejection of the appeals of ABLV Bank AS and Mr. Ernests Bernis, Mr. Oļegs Fiļs, OF Holding SIA and Cassandra Holding Company SIA requiring setting aside of the orders of the General Court of the European Union of 6 May 2019, ABLV Bank v ECB (Case C‑551/19 P), and the order of 6 May 2019, Bernis and Others v ECB (Case C‑552/19 P), by which the General Court dismissed as inadmissible their actions for annulment of the acts of the ECB of 23 February 2018 by which the ECB declared that ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, were failing or were likely to fail.

On 23 February 2018, the ECB found that ABLV Bank AS and its subsidiary ABLV Bank Luxembourg were failing or were likely to fail. On the same day, the Single Resolution Board found that it was not necessary to adopt a resolution scheme, because resolution action was not necessary in the public interest, within the meaning of point (c) of the first subparagraph of Article 18(1) and Article 18(5) of Regulation No. 806/2014.

According to the ECB, due to the significant deterioration of liquidity of ABLV Bank AS, the bank would most probably be unable to pay its debts or other liabilities as they fall due. The bank did not have sufficient funds immediately available to withstand stressed outflows of deposits before the commencement of pay-out procedure of the Latvian deposit guarantee fund.

On 3 May 2018, ABLV Bank AS and its biggest shareholders submitted applications to the European Court of Justice against the European Central Bank and Single Resolution Board about multiple potential violations.

On 6 May 2019, the General Court of the European Union dismissed as inadmissible actions of ABLV Bank AS and Mr. Ernests Bernis, Mr. Oļegs Fiļs, OF Holding SIA and Cassandra Holding Company SIA for annulment of the acts of the ECB of 23 February 2018 by which the ECB declared that ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, were failing or were likely to fail.

On 6 May 2021, the European Court of Justice rejected the appeals submitted by ABLV Bank and ABLV Bank AS and Mr. Ernests Bernis, Mr. Oļegs Fiļs, OF Holding SIA and Cassandra Holding Company SIA (Joined Cases C‑551/19 P and C‑552/19 P).

The European Central Bank was advised by partner Nauris Grigals. 

Judgment of the court can be found here:

https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:62019CJ0551&from=EN