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Primus Successfully Represents Luminor Bank in Recovery Cases

Primus Successfully Represents Luminor Bank in Recovery Cases

Latvia
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Primus has successfully represented AS Luminor Bank in several disputes after borrowers and guarantors, unable to meet their obligations towards the bank, disposed of their properties to relatives or friends to avoid recovery measures for those properties.

In one of these cases, according to Primus, “the debtors, having learnt about the upcoming claims, sold their property first to their colleagues, who disposed of that property to the relatives of the debtors a few weeks after the acquisition. Thus, the defendants tried to create the impression that the property had been disposed of to good faith beneficiaries several times, since under such circumstances it was not permissible to direct recovery against that property. The situation was complicated due to the fact that one of the defendants was a court clerk, who had learned about the bringing of the claim before the initiation of the proceedings.”

Primus brought a claim to the court and had securities imposed on all the disposed properties and other assets of the defendants.

“The fictitious nature of each transaction of disposal and the interrelation of all the defendants had to be proven in the case. After several court sessions, an agreement on making payments to the bank was reached. The parties made a settlement, which was approved by the court,” Primus stated in a press release.  

Similarly, in another case where the guarantor had disposed of real property in parts to her daughter over a period of three days, Primus also managed to get a favorable judgment for the bank, as the court declared the purchase agreements fictitious and void.

Primus’ team included Partners Sintija Radionova and Martins Mezinskis, Senior Associate Konstantins Telakovs, and Associates Alise Veide, Edgars Pundurs, and Rolands Valdemars.

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