Proceedings for issuing a decision on the initiation of resolution of Bank Spółdzielczy w Przemkowie
In the course of the proceedings concerning the decision to initiate the resolution of Bank Spółdzielczy w Przemkowie (BS w Przemkowie), the Fund conducted operational activities.
Before the decision on the resolution of BS w Przemkowie was made, in accordance with Article 137 of the BFG Act, the Fund had ensured the preparation of the valuation of the Bank’s assets and liabilities. For this purpose, the Fund cooperated with Deloitte Advisory spółka z ograniczoną odpowiedzialnością sp. k. (Deloitte Advisory), the entity preparing Valuation 1 and Valuation 2. The results of the valuation showed negative equity of BS w Przemkowie and confirmed the fulfilment of the conditions referred to in Article 101(7)(1)-(3) of the BFG Act.
The process of resolution of Bank Spółdzielczy w Przemkowie
On 30 April 2020, under the decision of the BFG of 28 April 2020, resolution was initiated against BS w Przemkowie and the sale of business tool was applied. The acquiring bank was SGB-Bank S.A. The acquiring bank was chosen in accordance with the principles set out in Article 178(1) of the BFG Act.
SGB-Bank S.A. took over, with the effect specified in Article 176(1) of the BFG Act, the business of the entity under resolution, including all the property rights and the liabilities, including all liabilities relating to the activities of the entity under resolution, except for the exemptions indicated in the decision.
To cover the losses set out in the valuation, the following capital instruments and liabilities referred to in Article 72(1) of the Act on the BFG were written down, together with accrued interest:
- shares of members of BS w Przemkowie recorded in the register of cooperative members;
- subordinated debt.
On 11 May 2020, in connection with the resolution of BS w Przemkowie, the Fund paid a subsidy to SGB-Bank S.A. in the amount of PLN 81,660.0 thousand.
On 13 May 2020, the Fund’s Management Board adopted a resolution on the justification of the decision of the BFG of 28 April 2020 on the initiation of resolution against BS w Przemkowie, write-down of capital instruments, application of the resolution tool and appointment of an administrator.
After the decision on the resolution of BS w Przemkowie was made, in accordance with Article 241 of the BFG Act, the Fund had valuation 3 prepared. The purpose of the valuation is to determine whether shareholders and creditors had been satisfied as a result of the resolution to a lesser extent than they would have been satisfied in the bankruptcy proceedings conducted if, at the date of the decision to initiate the resolution, the court had declared BS w Przemkowie bankrupt.
On 29 October 2020, the Fund’s Management Board, after the administrator had prepared the reports required by law, adopted a resolution on applying for the declaration of bankruptcy of BS w Przemkowie. On the same day, the application to declare BS w Przemkowie bankrupt was submitted to the District Court in Legnica. By the end of 2020, the Court had not referred to the content of the application.