OREANDA-NEWS. February 04, 2014. Since the declaration of bankruptcy on 7 December 2011 to the end of December 2013, the Snoras bankruptcy administrator, supported by bank staff, has managed to recover LTL 1 billion in loans repayments plus LTL 153 million in interest and other servicing payments as a result of active management of the bank's loan portfolio. Out of these amounts, LTL 50 million in loans and nearly LTL 7 million in interest was recovered by way of foreclosed property collateral.

In this period, the bankruptcy administrator's team took action to ensure the continued repayment of loans and interest; and importantly managed to unwind a loan transfer scheme involving funds registered in Cyprus, the Cayman and British Virgin Islands. The initial realisable value of these schemes to the bank was estimated to be around LTL 180 million but current estimates by the bankruptcy administrator suggest that recoveries may now be in excess of LTL 230 million. Over LTL 80 million has already been collected by the bank and further recovery procedures are underway.  

"Once we started the administration of the bank's bankruptcy, we and the subsequently appointed committee of creditors decided that an active management of the loan portfolio would initially generate the best value for bank's creditors. This strategy proved to be the right one as we have managed to recover a significant amount which will be used to make payments to creditors", says Neil Cooper, Snoras bankruptcy administrator.

According to Neil Cooper, the team has now begun looking for potential buyers of the Snoras loan portfolio but the final decision on its sale will be made only after an analysis and assessment of the sale possibilities and other alternatives. 

Currently, the loan administration process continues as usual, along with the sale of foreclosed real estate and legal enforcement actions concerning the recovery of loans. Private individuals and companies are also continuing to refinance their Snoras loans at other credit institutions.