With a court ruling today, Saga Investment Bank was authorized to seek composition. Under the proposed bill creditors get their claims paid in full, but creditors with claims of more than 11 million defer payment of their claims for up to nine months and get 1% of their claims paid in new shares in the bank.
The administrator of the composition will in the next few days publish a notice of claims. Creditors will thereafter be called to vote on the composition agreement. It is assumed that the composition will be completed by mid-December.
According to the bill, the existing share capital will be written down in full and new shares issued. A shareholders meeting is to be held in the coming days where the bill will be introduced and proposals to decrease and increase of share capital set forth.
