Jiřina Lužová, the appointed administrator overseeing the insolvency proceedings of Sberbank CZ, has submitted a request to the insolvency court seeking approval for the disbursement of CZK 57 billion to around 16,000 creditors. The proposed disbursement is intended as a partial distribution, and it is anticipated that all categories of creditors may receive 95 percent of their claims within the current year. Pending approval from the court, disbursements could potentially commence by mid-December of this year. This information was relayed by Lužová to ČTK and Hospodářské noviny.
In accordance with the financial market guarantee system, individual and small to medium-sized enterprises will ultimately receive full compensation for their claims, while larger enterprises and municipalities can expect to receive a minimum of 95 percent.
The Prague City Court declared Sberbank CZ bankrupt at the end of August, and the Czech National Bank (CNB) subsequently revoked the bank’s banking license in early May, leading to the bank’s liquidation by the Prague City Court. The CNB had initiated the license revocation process on February 28, 2022, citing the adverse impact of deposit outflows following the Russian invasion of Ukraine.
If the insolvency court sanctions the partial distribution, a 15-day window for potential appeals will be initiated. In the absence of opposition from any creditors, the insolvency administrator will initiate the disbursement as soon as the insolvency court’s decision to permit the partial distribution becomes legally binding.
Lužová emphasized the significance of this development, stating, “This is another crucial milestone toward disbursing funds to Sberbank CZ’s creditors. The timeline for them to receive their funds this year will now depend on their actions. It’s vital to bear in mind that even a single appeal could jeopardize the disbursement to the 16,000 creditors.”
She also mentioned that preparations are well underway for the actual disbursement process, including thorough verification of the database of entitled creditors to ensure a seamless commencement of the process. Komerční banka, with its prior experience in handling guarantee fund payments, is set to carry out most of the disbursements. Creditors will receive prompt information regarding the procedure to claim their funds once the partial schedule becomes legally effective.
Customers with deposits of up to EUR 100,000, approximately CZK 2.5 million, have already been compensated by the Financial Market Guarantee System, which disbursed over CZK 25 billion to more than 87,000 Sberbank CZ clients via Komerční banka branches. The Guarantee System initiated deposit refunds within seven working days of the bank’s collapse on March 9, 2022.
The bank will continue to oversee the management of the remaining loan portfolio and other assets that were not included in the purchase agreement with Česká spořitelna or the package of non-performing loans sold to a non-banking entity in July of this year.