TGS Baltic has advised the representatives of the European Central Bank on Latvian law matters related to the rejection of the appeals of ABLV Bank AS and its largest shareholders, Ernests Bernis, Olegs Fils, OF Holding SIA, and Cassandra Holding Company SIA, of the orders of the General Court of the European Union of May 6, 2019 (in ABLV Bank v ECB (Case C‑551/19 P) and in Bernis and Others v ECB (Case C‑552/19 P)), dismissing as inadmissible their actions for annulment of the ECB's February 23, 2018 declaration that ABLV Bank and its subsidiary, ABLV Bank Luxembourg SA, were failing or were likely to fail.
According to TGS Baltic, “on February 23, 2018, the ECB found that ABLV Bank AS and its subsidiary ABLV Bank Luxembourg were failing or were likely to fail. On the same day, the Single Resolution Board found that it was not necessary to adopt a resolution scheme, because resolution action was not necessary in the public interest, within the meaning of point (c) of the first subparagraph of Article 18(1) and Article 18(5) of Regulation No. 806/2014.”
According to the ECB, due to the significant deterioration of liquidity of ABLV Bank AS, the bank would most probably be unable to pay its debts or other liabilities as they fall due. The bank did not have sufficient funds immediately available to withstand stressed outflows of deposits before the commencement of pay-out procedure of the Latvian deposit guarantee fund.
According to TGS Baltic, “on May 3, 2018, ABLV Bank AS and its biggest shareholders submitted applications to the European Court of Justice against the European Central Bank and Single Resolution Board about multiple potential violations. On May 6, 2019, the General Court of the European Union dismissed [those applications] as inadmissible."
TGS Baltic’s team was led by Latvian Partner Nauris Grigals.
