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DSB declared bankrupt

Published on 20 Oct 2009 under category: legal

A Dutch lender has been declared bankrupt after a late rescue proposal was rejected.

DSB was forced to call in bankruptcy solicitors as it missed the deadline of yesterday (October 19th) that was set for it to be sold to a US lender.

This comes after the Dutch national bank - De Nederlandsche Bank - took control of DSB last week.

This means that Dutch lenders are now liable for €3.25 billion (£2.97 billion) in deposit guarantees.

A statement from the District Court of Amsterdam said: "The court comes to the conclusion that everything possible was done to save the bank, but that there are no prospects of that being achieved."

It added that this was the reason for the firm being declared bankrupt.

In related news, earlier this month Frontier Airlines exited Chapter 11 bankruptcy protection after it was purchased by Republic Airways Holdings, which resulted in it become a wholly-owned subsidiary of the acquiring firm and Lynx Aviation.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.