As advised back in June 2023, UAB PayrNet ceased business operations following the revocation of its licence by the Bank of Lithuania and has been taking steps to wind down the business.
As the next step in the winding down process, the Vilnius District Court has made orders for the commencement of bankruptcy of UAB PayrNet and the appointment of an insolvency administrator. These orders became effective on Tuesday, 21 November 2023.
Vaidas Verenius has been appointed the insolvency administrator of UAB PayrNet and will assume control of the business. The administrator’s details can be found at https://nemokumas.avnt.lt/public/manager/edit?uuid=0a64194a-8563-1f9c-8185-6422fc280e9f.
We would expect the administrator will provide more information to customers and creditors regarding the bankruptcy in due course.
As at Monday 30 October 2023, UAB PayrNet has returned over 96.5% of the safeguarded funds which were held by the Company as at the date of licence revocation, meaning over EUR 110M of safeguarded funds have been returned to customers or settled with card schemes on behalf of customers. Safeguarded liabilities are matched by funds held in a segregated bank account of the Company with a reputable credit institution. The remaining safeguarded funds will be handed to the administrator to distribute to safeguarded customers.
UAB PayrNet has achieved a migration to new service providers of substantially all of its active customer programmes, meaning that customers have been able to access new financial services as quickly as possible.
There are a few programmes where the service provider has ceased operations and there were challenges with the return of safeguarded funds, or where the Company lacked bank details to return funds to customers.