Activities of provisional administration to manage NCI Bank LLC terminated
On 12 November 2020, the Bank of Russia terminated the activities of the provisional administration appointed to manage Neva Construction and Investment Bank (hereinafter, the Bank).
The provisional administration has established that the Bank issued loans to borrowers that might knowingly default on their obligations and stopped servicing their debt after the Bank’s licence was revoked. These loans mostly represent debt which is directly or indirectly related to financing the business of one of the Bank’s shareholders.
The provisional administration and the Bank of Russia have submitted their appeals to law enforcement authorities.
During the period of its activity, the provisional administration tried to recover overdue debt. Demands and pre-trial claims were sent to borrowers, guarantors, and pledgors. It also filed lawsuits to recover debt and to enforce collateral in favour of the Bank.
On 27 October 2020, the Arbitration Court of St Petersburg and the Leningrad Region decided on a compulsory winding-up of the Bank.
The State Corporation Deposit Insurance Agency was appointed as liquidator.
Detailed information on the results of the activity of the provisional administration is published on the Bank of Russia website.
1 The provisional administration was appointed by Bank of Russia Order No. OD-1177, dated 24 July 2020, due to the revocation of the Bank’s licence.
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