The British OFSI approved a liquidation plan with VTB Capital’s creditors

As RBC writes with reference to a report by Teneo Financial Advisory Ltd (which deals with external management of the structure), last month OFSI adjusted the license under which it is supposed to sell the assets of VTB Capital.

From the document it appears that the regulator gave permission to the administrators to launch the proposed liquidation plan with creditors, including the parent bank in the Russian Federation. If the court and creditors approve the procedure, payments will be made through the Holding Period Trust (HPT).

How you propose to implement a scheme with a trust

• Under the plan, creditors who are not sanctioned will be able to receive their money directly, while those who are subject to restrictions will receive payments through HPT. The trust itself will operate for at least 15 years. The basis for agreements by HPT will be the lifting of sanctions or the presence of a special license;
• Thus, a court hearing will be held on July 1, where it is planned to obtain permission to convene a meeting of creditors of VTB Capital;
• If the court approves the liquidation plan, the investment bank’s management will send the creditors a detailed description of the procedure and the documents for their signature;
• Then, on September 5, creditors will meet to vote on the plan. It was previously noted that you must be approved by most lenders;
• There will be another court hearing on September 12, where the final decision will be made.

In total, VTB Capital’s British debt amounts to more than 800 million pounds. A significant part of the amount (£804 million) are obligations to 434 final creditors (including 164 employees). VTB’s direct rights to the structure are estimated at £262 million.