Leszek Czarnecki appeals against forced restructuring of Idea Bank
Leszek Czarnecki, the main shareholder of Idea Bank, informed Gazeta Wyborcza daily that he was touched and shocked by the decision on the forced restructuring of the bank and its takeover by Pekao. On Monday, an appeal will be submitted to the Provincial Administrative Court in Warsaw against the decision of the Bank Guarantee Fund (BFG) to initiate the forced restructuring procedure of Idea Bank and its takeover by Bank Pekao, according to the statement by Leszek Czarnecki.
"Today's decision of the BFG on the practical nationalization of Idea Bank is a clear violation of the law. It takes place when Idea Bank started to achieve positive effects of restructuring," Czarnecki stated.
"Since the main investor of Idea Bank is my entity registered in the Netherlands, I announce that the actions of the BFG and the PFSA will result in claims for damages before the International Tribunal established on the basis of a special investment agreement between Poland and the Netherlands for the amount constituting the value of my shares and their future profits," Czarnecki also wrote.
Bank Pekao, as part of the compulsory restructuring of Idea Bank initiated by the BFG, will take over on January 3, 2021, under an administrative decision, the enterprise and liabilities of Idea Bank with the exemptions specified in the decision. As reported by the BFG, all customer deposits will be fully transferred to the acquiring bank, as well as loans, and customer service will not be suspended.
Pursuant to the principle of covering losses by the owners of a bank that is threatened with bankruptcy, bank shares will be redeemed, similarly to subordinated bonds. The bank's management board was dissolved and the powers of the supervisory board were suspended.
The BFG announced that before making the decision on the compulsory restructuring, the Fund ensured that the value of Idea Bank's assets and liabilities was assessed. The estimate made by PwC Advisory shows that the entity's assets were not sufficient to meet its liabilities and that Idea Bank's equity is minus PLN 482.8 million.
It is also known that BFG will grant Bank Pekao a subsidy of PLN 193 million under the takeover agreement.
