Transfer of Good Bank from Ūkio bankas to Šiaulių bankas

01.04.2013 Transfer of Good Bank from Ūkio bankas to Šiaulių bankas

TGS Baltic advised the Lithuanian state company Deposit and Investment Insurance in connection with the transfer of the assets, rights and liabilities of bankrupt AB Ūkio Bankas to AB Šiaulių Bankas.

The transaction involved the transfer of good bank assets and insured deposits from Ūkio Bankas to Šiaulių Bankas, a Lithuanian bank with the European Bank for Reconstruction and Development among its major shareholders. As part of the transaction, the state company Deposit and Investment Insurance funded the gap between the value of the assets and the liabilities assumed by Šiaulių Bankas.

Asset value of approximately 800 million euros made this the largest transaction in Lithuania in the last several years. It was the very first transaction in Lithuania in which an insolvent bank was split into two parts, with one part (the good bank) transferred to a healthy bank (Siauliu Bankas) and the other part left to undergo bankruptcy.This was the very first transaction of this nature in the Lithuanian banking sector whereby the insolvent bank was split in two parts – , one part (good bank) was transferred to a healthy bank Siauliu bankas, the other part, remaining in Ukio bankas was bankrupted.