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Shareholders cannot Sell Liberty Bank

A  purchase of  Liberty Bank  by  Patarkatsishvili’s family  has been delayed. This is not the first sale of the bank ended in failure. Earlier, according to reports, TBC Bank was interested in  Liberty purchasing but finally refused the deal.

The deal has failed for several reasons. In particular, an unfavorable state of  the bank’s assets, a dispute between the bank’s former shareholders and the bank’s  extremely weak management. It became known in late May that Badri Patarkatsishvili’s family was  buying Liberty Bank. CBW reported that the assets were being examined by  the tycoon’s family  which was  represented by George Kalandarishvili and Irakli Rukhadze.

Both of them have close ties with Badri Patarkatsishvili’s family. George Kalandarishvili was General Director in  Standard Bank owned by Badri Patarkatsishvili before the bank was sold. As for Irakli Rukhadze, he was  the chief executive of Salford Georgia-  an international private equity firm that focuses on investments in CEE and CIS with offices in Moscow, Tbilisi, Kiev, Belgrade and London. Just this company managed  the tycoon’s assets,  including TV station Imedi.

CBW has learnt that  the acquisition process is  suspended. The main reasons  for this was the bank’s improper condition and a dispute  between former shareholders. In particular, in terms of asset quality, several problems have been revealed. For example, in the first quarter of 2015 a share of inactive loans in the total loans increased  from  4.24% to 7.57% compared with the same period last year.

It’s also noteworthy that  the growth rate of  total loans amounted to 0.91% in the first quarter while in the same period last year  this figure reached  10.03%. However, it should be noted that a share of liquid assets in total assets  amounts to 40.71% that  slightly exceeds the figure for the previous year’s same period (38.34%). It is unknown what  influenced the decision of potential investors, however, as reported, they were not satisfied with  the bank’s assets quality.

In addition, litigation continues  between the bank’s partners, as a result ,  the court sealed the whole 61% stake in the bank, and the party that claims to own the bank warned all potential investors about the undesirability of the purchase of the bank which is involved in the   trial. Recently one of the bank’s founders, the famous Georgian financier, former Prime Minister Lado Gurgenidze has left the ranks of shareholders.

The majority shareholder of Liberty Bank was the Romanian businessman Dinu Patriciu, who recently passed away.