According to a press release published on Thursday, on 8 January ABLV Bank Luxembourg, AS in liquidation, and Duet Group Limited inked the agreement, which remains subject to the approval of Luxembourg financial services authority the CSSF.

ABLV said that parties were “determined to complete the transaction as soon as possible”.

Luxembourg’s commercial court extended the bank’s suspension of payments regime for an additional four months to allow time to conclude negotiations with investors.

ABLV said: “If necessary, another request to the Luxembourg Commercial Court for prolongation of the suspension-of-payments regime will be introduced in order to allow for all stakeholders to be protected while Duet’s acquisition is considered, with protection of existing depositors as the primary objective.”

In February 2020, the CSSF suspended payments by ABLV Luxembourg, a subsidiary of the Latvian bank ABLV Bank. It acted on the recommendations from the European Central Bank to impose a moratorium on the subsidiary after money laundering charges were brought against the Latvian parent bank.

At the beginning of march, the commercial court of Luxembourg rejected a request to liquidate the Luxembourg subsidiary of the Latvian group and placed it in suspension of payment for six months pending a buyer.