Bank Gorod (Moscow) has commenced a reorganization procedure by taking over Ipoteka-Invest (Kazan), the Russian central bank’s PR department reported on Monday.

As Bank Gorod said in a press release posted on its web site, the bank’s shareholders approved a decision to take over Tatarstan-based lender at an extraordinary shareholders meeting held on June 15.

“As a result of the reorganization Bank Gorod will become Ipoteka-Invest’s successor under all the rights and obligations, including under all obligations with regard to all its creditors and debtors, including liabilities challenged by the parties," the bank emphasized in a press release.

The reorganization’s anticipated deadline is September 1, 2012. On completion of the reorganization Bank Gorod’s registered office, corporate status and corporate name will remain the same.

Bank Gorod was established in Vorkuta in 1994, has operated under the current corporate name since 2007 and since 2011 the lender is headquartered in Moscow. The bank’s key areas are lending and cash settlement services provided to businesses, and also retail deposits. The bank’s shareholders are Sergey Kvasnyuk (32.9%), Yury Vasiliev (19.7%), Oleg Komarov (19%), Stanislav Kulagin (11.7%) and Viktor Vasiliev (11%). Based on data, as of June 1, 2012 the bank’s net assets stood at Rub 5.08 bln (No. 365 in Russia), capital (calculated in line with CBR requirements) totaled Rub 550 mln, the credit portfolio amounted to Rub 3.64 bln and obligations to households equaled Rub 2.26 bln.

As of June 1, 2012 Ipoteka-Invest’s net assets were equal to Rub 3.51 bln (No. 429 in Russia), the credit portfolio totaled Rub 2.45 bln and liabilities to households amounted to Rub 1.11 bln.