Defunct Snoras to Put Cash in Lithuania Debt: Verslo

Bankrupt lender Bankas Snoras AB’s administrator will invest most of the cash it has recovered into Lithuanian government securities pending a court ruling on the priority of creditors’ claims, Verslo Zinios reported.

Creditors have authorized investing the money, which totaled 1.3 billion litai ($490 million) at Nov. 1, for no longer than two years in Lithuania debt securities or deposits at local units of Nordic banks, the newspaper said, citing Aurelija Mazintiene, the head of the creditors committee.

Lithuania’s Constitutional Court has been asked to rule on a law that gives the state’s deposit-insurance company top priority among Snoras creditors, the newspaper said.

The Finance Ministry is considering a private placement of debt securities to Snoras so that it can invest its money without any impact on capital markets, Verslo Zinios reported, without identifying the source of the information.

To contact the reporter on this story: Bryan Bradley in Vilnius at

To contact the editor responsible for this story: Balazs Penz at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.