"Given significant financial losses over the extended period since March 2018 and in order to protect the interests of the depositors and shareholders, ABLV Bank Luxembourg, SA has decided to agree to the start of the judicial liquidation process," ABLV said in a statement.
Luxembourg’s financial supervisory authority, Commission de Surveillance du Secteur Financier (CSSF), has filed an application with the Luxembourg Commercial Court in order to put ABLV Bank Luxembourg, S.A. into judicial
liquidation, it added.
The Luxembourg Commercial Court will make a decision about lifting the previously imposed protection mechanism and commencement of judicial liquidation and setting out its key terms on 2 July 2019, Arvids Kostomarovs, liquidator of ABLV Bank, AS in liquidation, reported.
According to Kostomarovs, since March 2018 the bank in Luxembourg has been losing about EUR 250,000 every month and a mooted acquisition of the bank by Duet Group Limited has not panned out.
“The best solution in this situation is to lift the protection mechanism imposed on the bank more than a year ago and start the liquidation process. Currently, this is the best decision in the interests of all parties including depositors, and us as the shareholder,” Kostomarovs said.
The collapse of the ABLV financial empire was precipitated by a damning report from the U.S. Department of Treasury in February 2018.
ABLV Bank Luxembourg, S.A. has been operating since 2013 and employing about 20 people, according to the bank.