Kosice Court Declares Bankruptcy on Rapid Life Insurer's Property

Kosice Court Declares Bankruptcy on Rapid Life Insurer's Property

Kosice, January 29 (TASR) – The Kosice I District Court has declared bankruptcy on the assets of the Kosice-based life insurance company Rapid Life, TASR learnt from a ruling published in the Commercial Bulletin on Monday.

The court determined Kosice attorney Dana Hustakova to be the receiver of assets in bankruptcy. She is supposed to prepare and submit within 15 days a detailed written report on the status of detecting and securing the assets of the bankrupt and on other acts. After the bankruptcy is declared, Rapid Life clients have 45 days to apply for their claims.

The bankruptcy proceedings proposal was filed in late November by the insurer’s administrator Irena Sopkova. “There are 14,730 individuals and about 50 legal entities that are affected, in a total amount of €26 million,” said the administrator, adding that the company’s assets were negligible on the date the bankruptcy motion was filed. The question then is whether the clients will get any money.

The time period for registering a claim starts on Tuesday (January 30). The non-profit organisation Consumer Centre announced that it will file bankruptcy applications for the consumers who have contacted it.

The Slovak central bank (NBS) imposed the forced administration in the insurance company in mid-June 2017. This was due to the finding that the insurer was seriously threatening the rights of its clients. The administrator filed a criminal motion against the statutory representatives.

According to the insurance company’s former management, the declaration of the forced administration was illegal, thus breaching their right to a fair trial.