Legal advice

Is there still time to lodge a creditor’s claim with PNB bank?

08.01.2020 Irina Stromberga, lawyer

Due to the fact that on September 12, 2019 Riga Vidzeme District Court declared PLC “PNB Banka” insolvent, all creditors were offered to submit a creditor’s claim to the court-appointed insolvency administrator. The deadline for filing such a claim is 3 months from the date of publication of the court decision in the official publisher “Latvijas Vēstnesis”. The publication was made on September 19, 2019. Accordingly, the three-month period expired on December 18, 2019.

However, if you failed to file your creditor claim within the time limit, that does not mean that you are not entitled to do so at a later date. Pursuant to Article 73 of the Latvian Insolvency Law, a creditor may submit his or her claim against the debtor within a deadline not exceeding 6 months from the day when the entry has been made in the Insolvency Register regarding proclamation of the insolvency proceedings of the debtor, but not later than until the day when the plan for settling the creditors’ claims has been drawn up. After this deadline a limitation period sets in, thereby the creditor shall lose his or her creditor status and his or her rights to claim against the debtor.

Of course, such overdue creditors also have limitations: first, under the Latvian Insolvency Law, they have no voting rights at creditors’ meetings; secondly, under the Credit Institution Law, the claims of such creditors will have an eighth priority. Nonetheless, it is possible and necessary to apply at this time, as the creditor retains his or her claim against the bank and the possibility of obtaining his or her own funds.

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