Legal battle looms as Allbank liquidated
The Panama Banks Superintendency of dered on Friday, the forced liquidation of the Venezuelan capital bank AllBank.
The regulator took administrative and operational control of the bank on September 9. An evaluation of the interim administrator and the Superintendency itself said: “it is demonstrated that, due to the financial, operational and corporate governance situation of Allbank, Corp., it is not appropriate to reorganize it or attempt its sale to another bank.”
The intervention of the bank in Panama came after Banco del Orinoco, NV, a bank controlled by the same group in Curaçao was intervened by the regulator of the Caribbean island reports La Prensa.
A quarter of AllBank’s liquid assets are placed in that entity and it also provides custody services for a third of the investments in securities that are part of Allbank’s productive assets, the regulator explained in a note dated September 9. “This results in the fact that Banco Orinoco NV cannot continue providing its regular services, it will not be able to offer new services, nor attract clients and it will not be able to comply with its debts so that at the moment all its assets will be frozen.”
AllBank’s intervention in Panama caused concern among its clients and depositors. A group of businessmen from the Colon Free Zone sent a letter to the Superintendent of Panama, Ricardo Fernández, warning of the operational risk that irs companies were running due to the intervention of AllBank since it was the only bank that allowed relations with Cuba and had deposited in their working capital that entity.
In a statement, the bank warns that the decision of the Superintendency causes property damage to savers and shareholders, “who will activate all legal remedies to reverse this action.”
The bank warns that the measures of the Panamanian regulator violate their right to defense and prevent depositors and savers from disposing of their assets. “It is noteworthy that the proceeding of the superintendency of Banks of Panama contradicts all its previous acts, in which it expressed its agreement with the financial statement of Allbank Corp.”
