Proceedings for issuing a decision on the initiation of resolution of Idea Bank S.A.

Before the decision on the resolution of Idea Bank S.A. was made, in accordance with Article 137 of the BFG Act, the  valuation of the Bank’s assets and liabilitieshad been carried out. For this purpose, the Fund cooperated with PwC Advisory spółka z ograniczoną odpowiedzialnością sp. k. (PwC Advisory), the entity preparing Valuation 1 and Valuation 2. The Fund, based on Valuation 1 prepared by an independent valuer, ascertained that the amount of equity of Idea Bank as of 31 August 2020 was negative and amounted to PLN – 482,794 thousand, which confirms the conditions mentioned in Article 101(3)(2) of the BFG Act, stating that the assets of Idea Bank S.A. were not sufficient to cover its liabilities.

Considering the above, and after confirming that the conditions referred to in Article 101(7)(1)-(3) of the BFG Act had been met, as well as after the Fund’s receiving a binding offer to take over the property rights and selected liabilities of Idea Bank S.A., on 30 December 2020 the Fund’s Management Board adopted a resolution on initiating the resolution process against Idea Bank S.A., write-down of the capital instruments of Idea Bank S.A., applying the resolution tool against Idea Bank S.A., and appointing the administrator of Idea Bank S.A.

The process of resolution of Idea Bank S.A.

On 31 December 2020, the Fund’s decision was delivered to Idea Bank. Thus, on 31 December 2020, the resolution process against Idea Bank was initiated. Also on that date, Idea Bank’s capital instruments were written down and an administrator was appointed in Idea Bank.

In addition, according to the decision, on 3 January 2021, the property rights of the entity under resolution and selected liabilities were transferred to Bank Pekao S.A.

The decision of the BFG on the resolution of Idea Bank S.A. was appealed to the Voivodship Administrative Court in Warsaw, which, on 25 August 2021, dismissed all complaints.