COBALT led an unprecedented transfer of good bank assets to a major Lithuanian bank

COBALT assisted the temporary administrator in the process of administration of AB Ūkio bankas, a major Lithuanian bank, whose activities were restricted by the Central Bank of the Republic of Lithuania, and a complex transfer and assumption of the assets, rights, transactions and liabilities of AB Ūkio bankas by AB Šiaulių bankas.

The deal of such type was unprecedented in Lithuania, and best practices developed by the IMF were applied to structure and implement the transaction. AB Šiauliu bankas, a Lithuanian bank controlled by the European Bank for Reconstruction and Development (EBRD) and a group of local investors, accepted the transfer of good bank assets and assumed the insured deposits after the Central Bank of Lithuania had approved this type of transaction as the preferred solution to maintain the stability of the Lithuanian banking system. With the asset value of approx. EUR 782 million, this is the largest transaction in Lithuania during several past years.

COBALT work included a wide scope of legal services to AB Ūkio bankas, including assistance to the temporary administrator of AB Ūkio bankas, drafting of legal documentation, structuring of novel instruments for the protection of interests of AB Ūkio bankas’ creditors, and assistance in complex negotiations and transfer procedures. The case was led by Managing Partner Dr Irmantas Norkus and Managing Associates Dr Juozas Rimas and Akvilė Bosaitė. The team included Senior Associates Giedrius Murauskas, Julija Lisovskaja and Associates Rūta Balkevičiūtė-Mačeikienė, Mindaugas Rimkus and Skomantas Grigas.