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Sberbank bankruptcy administrator seeks extension for creditor payout deadline

Translated by Milo Dvorak

8. 4. 2024

Business Newsletter #23

newsletter 23
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The insolvency administrator of the bankrupt Sberbank, Jiřina Lužová, has petitioned the court for an extension of the deadline for creditor payouts. The current deadline, set to expire on 15th April, is proposed to be extended by 30 days, citing the significant number of creditors who are yet to receive payment. The disbursement process commenced on 18th March, with the administrator indicating in her extension request that as of 28th March, more than 84 percent of creditors had not applied for their payout. There are over 15,300 creditors due to receive approximately 57 billion Czech crowns in total.

"As of 28th March 2024, approximately 2,400 creditors have requested payments, to whom the insolvency administrator, directly and via Komerční banka, has disbursed roughly 44.8 billion Czech crowns. Thus, more than 84 percent of creditors have not yet requested their payouts," the proposal stated.

The payout process requires creditors to take proactive steps by submitting documents to verify their identity and to execute the payment. Individual creditors may visit any Komerční banka branch for payment processing, while corporate entities should approach Komerční banka's corporate centres or contact their corporate bankers directly. Online applications can be made for payouts of up to 100,000 Czech crowns.

The high proportion of unpaid creditors, according to the administrator, can be attributed to the total number of creditors and their composition, with the vast majority having claims of less than 1,000 Czech crowns. Additionally, many creditors are based abroad, further complicating their ability to obtain the necessary documents for identification and verification of the true owner's identity by the deadline.

According to Šárka Nevoralová, spokesperson for Komerční banka, there have been no complications with the payout process. Most creditors have been requesting payments in-person at a branch. In the first two weeks, the bank disbursed 19.6 billion Czech crowns to 2,549 Sberbank CZ creditors, which is more than a third of the total amount, the KB spokesperson informed ČTK this week.

The Prague City Court declared bankruptcy on Sberbank CZ in late August two years ago, following the Czech National Bank's definitive revocation of the bank's license at the beginning of May. The steps to withdraw the license commenced on 28th February 2022, prompted by the deteriorating situation at Sberbank CZ due to a withdrawal of deposits following the Russian invasion of Ukraine.

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