Nobody expresses interest in recapitalization of Montenegrin Atlas Banka

Nobody has expressed interest in the recapitalization of the troubled lender Atlas Banka, the bank’s interim administration announced late Monday. The provisional administration said that not a single share from the recapitalization package was sold until the Mar 29 deadline. The package involved the offering of 88,710 shares worth EUR248 each with a total value of EUR22m. The offering began on Mar 7 and was open to all investors. The bank’s temporary administrator Tanja Teric said that the next step for the bank will be taken after the Capital Market Commission issues an official document for unsuccessful recapitalization.

The existing shareholders of Atlas Banka also expressed no interest in the recapitalization of the bank as none of them subscribed to any of the 88,710 ordinary shares offered as part of the recapitalization plan. We note that the central bank took provisional management over Atlas Banka and another local lender Invest Banka in December to protect the interests of depositors and prevent further deterioration of the financial situation in those banks. The CBCG later determined that Atlas Banka could be recapitalized and saved, while Invest Banka was declared bankrupt. The two banks are locally-owned and their market share is just over 6%.

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