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RASK partner Tarmo Peterson was appointed as interim bankruptcy trustee for Tartu Credit Union
RASK partner Tarmo Peterson was appointed as interim bankruptcy trustee for Tartu Credit Union
The Tartu County Court accepted Tartu Credit Union’s petition for bankruptcy and appointed RASK partner and attorney-at-law Tarmo Peterson as interim bankruptcy trustee. The trustee must submit a report to the court by May 4 explaining the reasons for the insolvency.
In an interview to ERR, Peterson stated: “In this case – as is relatively common when appointing interim bankruptcy trustee – the court has imposed a freeze on the credit union’s operations and assets. In addition, as a measure to secure the bankruptcy petition, transactions related to the exercise of shareholders’ rights in subsidiaries are prohibited, among other things. In this regard, the court has deemed it necessary to implement measures intended to ensure the preservation of the association’s assets.”
The appointment of a interim bankruptcy trustee does not constitute a declaration of bankruptcy. The court will decide on the declaration of bankruptcy after receiving the interim trustee’s report, provided that there is permanent insolvency.
At this time, creditors do not need to submit claims to the interim trustee. Until a decision is made to declare bankruptcy, the proper addressee for claims and demands is the Tartu Credit Union. However, if bankruptcy is declared, claims must be submitted to the bankruptcy trustee.
In an interview to ERR, Peterson stated: “In this case – as is relatively common when appointing interim bankruptcy trustee – the court has imposed a freeze on the credit union’s operations and assets. In addition, as a measure to secure the bankruptcy petition, transactions related to the exercise of shareholders’ rights in subsidiaries are prohibited, among other things. In this regard, the court has deemed it necessary to implement measures intended to ensure the preservation of the association’s assets.”
The appointment of a interim bankruptcy trustee does not constitute a declaration of bankruptcy. The court will decide on the declaration of bankruptcy after receiving the interim trustee’s report, provided that there is permanent insolvency.
At this time, creditors do not need to submit claims to the interim trustee. Until a decision is made to declare bankruptcy, the proper addressee for claims and demands is the Tartu Credit Union. However, if bankruptcy is declared, claims must be submitted to the bankruptcy trustee.