Banque Havilland S.A. – General update

Dear Clients and Suppliers,

We are writing further to our earlier communication regarding the withdrawal of the Company’s banking license by the European Central Bank (the “ECB”), (“ECB Decision”) and subsequent admission of the Company to the regime of the suspension of payment (“SOP”) effective on 2 August 2024. As a result and for the time being all payments are suspended and no action or decision may be taken unless authorised by the Court-appointed Joint Administrators.

The ECB Decision was not based on any issue of solvency or liquidity of the Company. The Company continues to protect its depositors’ and creditors’ interests, as mandated by the Court, while working towards an orderly wind-down of its banking activities.

The Company filed an appeal against the ECB Decision but has not opposed to the opening of the SOP, which is intended to protect the interests of all clients and other creditors and to enable a structured way forward. Under the control of the Court Appointed Joint Administrators, the Company is working towards an orderly wind down of the banking operations, including payment of your deposits and receivables, as soon as possible (“PayOut”). In this regard, the Company has requested and obtained approval from the Court to extend the current SOP in order to conclude arrangements to facilitate the PayOut. This extension is necessary also to meet certain requirements, particularly the review of our end of year 2024 financials by the external auditor. Kindly note that the PayOut remains subject to the Court’s prior approval, which will be requested once the Company has been able to conclude the necessary arrangements.

In the meanwhile, the Company continues the restitution of those clients’ assets which are not subject to the SOP, with some operational constraints caused by the context the Company is currently operating in.

The Company is committed to deliver resolution to its clients and suppliers as soon as possible. In the opinion of the Company the anticipated request to the Court for approving the PayOut is in the best interest of all its clients and creditors and we believe is likely to succeed. However we should also note that failure to obtain a positive decision from the Court for the PayOut would disrupt the Company’s plan for an organized winding down and likely lead to significant delays in the release of deposits.

We will communicate updates and/or estimation for timing as soon as possible. We apologise for the inconvenience this situation has caused you and assure you that the Bank’s Board, Management and staff are working hard to rectify it.