The leakage of accumulated deposits between 10 and 13 March amounted to 124 million after the “panic” of customers
MADRID, 25 (IRIN)
The Commercial Court No. 1 of Madrid has declared bankruptcy voluntary Banco Madrid following the decision of the Fund for Orderly Bank Restructuring (FROB) not to rescue the entity and has decreed the opening of its liquidation.
This decision implies the cessation of interim managers appointed by the Bank of Spain, which will be replaced by the receivers.
The court had suspended the procedure of bankruptcy filed by Banco Madrid awaiting response FROB.
The opening of the liquidation of Banco Madrid will the acceleration of deferred insolvency claims and conversion into money those that consist of other benefits.
Thus, the court appoints a trustee first Legal and Economic Administrators proposal of the Deposit Guarantee Fund (FGD) and second administrator is in the public interest State Agency for Tax Administration.
On the first administrator, auto, sent by the Superior Court of Madrid, notes that must prove that it has signed a liability insurance or equivalent guarantee answer possible damage in the exercise of its function.
In addition, it has been named assistant delegate of the receivers to society Data Bankruptcy. The receivers have to submit within fifteen days of accepting their positions a plan for the realization of assets and rights included in the active mass of the competition. This period may be extended depending on the complexity of the competition.
CALL TO CREDITORS.
The car performed well I appeal to the creditors of the bankrupt to bring to the attention the existence of their claims within one month of its publication in the Official Gazette.
The bankruptcy administration made “without delay” an individualized communication to each creditor whose identity and address stated on the documentation in the car informing of the insolvency and the duty to submit claims in the manner prescribed by law.
Against the insolvency be appealed before the Provincial Court of Madrid. This procedure does not have suspensive effect and shall be filed within 20 days from the day following the decision of the judge.
Moreover, self refers to the documents submitted in the written request the contest. In this regard, it is stated that after a series of events a situation of “panic and distrust” between customers of Banco Madrid after the events that happened to be operated entity rushed.
Specifically, refers to the intervention of the Bank of Spain, the mass resignation of the board of Banco Madrid and replacing interim managers and the announcement of the opening of proceedings against the entity by the Sepblac. This “panic” caused a leak of accumulated deposits of 124 million euros between 10 and March 13.
NEGATIVE CASH OVER 100 MILLION.
In addition, this documentation reveals that at the end of the day Friday March 13 were registered additionally orders withdrawal of deposits by 52.3 million euros and there was a “real risk” that the fund managers may place orders for Banco Madrid withdraw more cash and transfer it to accounts of others, which would mean the immediate withdrawal of an amount close to 150 million in total.
So, you would have placed Banco Madrid in a situation of negative cash of over 100 million, as recorded by the auto
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