Defunct Snoras to Put Cash in Lithuania Debt: VersloBryan Bradley
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.