Consideration and Satisfaction of Creditor Claims. Disclosure of Bankruptcy /Liquidation Management Progress and Results.

In 2008, the Agency considered and accepted more than 9.5 thousand claims of creditors of nearly 60 banks. A part of these claims were rejected for objective reasons (lack of evidence of indebtedness, failure to present supporting documents as established by law, etc.). Appropriate notifications were sent to all claimants.

In total, claims of more than 35.1 thousand creditors of banks with uncompleted liquidation proceedings were acknowledged as on January 1, 2009 amounting 18.8 billion rubles in total. Indebtedness to depositors comprises more than one-third of accepted claims (Fig. 11).

Fig. 11. Structure of Indebtedness Volume of Banks with Uncompleted Liquidation Proceedings as of January 1, 2009, billion rubles

In 2008, there were payments effected to more than 5,200 creditors of 62 liquidated banks, including 3,200 household depositors. 2 billion rubles have been directed to the payouts.

As a result of these payments, almost 1,600 creditors' claims were satisfied to full extent, more than 600 of them were household depositors. The average rate of satisfaction of creditor claims in 2008 was 18.9%, the analogical rate in the previous period was 17.7%.

In credit institutions with liquidation proceedings completed in the reporting period, percent of creditor claims’ satisfaction decreased in comparison with 2007 (60.6%) and was equal to 41.3%.

The reason for this is that the one third (0.7 billion rubles) of acknowledged creditor claims fall in liquidated credit institutions that are absent debtors which terminated their operation in the 1990s. Liquidation of these institutions was carried out by bankruptcy trustees - private entrepreneurs, who did not insure safety of the credit institutions’ assets and documents, which deprived the Agency of the opportunity to satisfy claims of their creditors.

Without considering creditor claims of absent debtors the average rate of creditor claims satisfaction in these credit institutions in 2008 was 61%, of which: in case of compulsory liquidation – 100%, in case of bankruptcy – 44.9% (Fig. 12).

Fig. 12. The Average Rate of Creditor Claims Satisfaction in Credit Institutions where Bankruptcy (Compulsory Liquidation) Proceedings Were Completed in 2008

Over the reporting period there has increased the share of credit institutions in which creditor claims were satisfied to full extent. So, if in 2007 the share of such institutions was equal to 50% (24 from 48), in the reporting year it reached 74% (34 from 46).

An important element of credit institutions' bankruptcy (compulsory liquidation) management organization is insuring its transparency.

In the reporting year, 300 mandatory publications regarding bankruptcy (compulsory liquidation) proceedings were published in central and local press. Publications were replicated on the Agency’s web site.

In 2008, the Agency held 84 meetings of liquidated banks’ creditors, including 33 – initial meetings and 51 – regular ones, among them 4 - at the initiative of creditors. In total for the period since 2005 there were organized and held 305 meetings of creditors. Meetings of creditors have taken place in due time and were recognized legally qualified. The results of all held meetings of creditors were documented by minutes delivered to arbitration courts at the time stated by the law. Creditors of liquidated banks had a possibility to familiarize themselves with the resulting documents of held meetings. Upon creditors’ requests information materials were sent to them after meetings via e-mail. In total during the reporting year the materials were sent to more than 100 addresses.

The Agency implemented the liquidation proceedings in failed credit institutions in close cooperation with creditors’ committees of the liquidated banks. As of January 1, 2009 there were elected and worked 58 committees. Among them 24 committees were newly elected during the reporting period and nearly 300 meetings of creditors’ committees were organized, held and documented in the minutes.

Reports by the corporate bankruptcy trustee and other materials on bankruptcy proceedings progress and outcomes were sent to arbitration courts and the Bank of Russia as bodies authorized to control the Agency’s operations related to credit institutions liquidation.

The information materials prepared by the Agency independently and jointly with the Bank of Russia, including reports by corporate bankruptcy trustees, were constantly placed on the Agency’s and Bank of Russia’s websites in the Internet.

First deputy general director Valery Miroshnikov