THE COURT STOPPED INSOLVENCY PROCEEDINGS AGAINST CORPORATE COMMERCIAL BANK

On 24th of November, as expected, Sofia City Court stopped the insolvency proceeding against Corporate Commercial Bank (CCB) until the Supreme Administrative Court (SAC) rules on the appeal against the revoking of Corp Bank’s license.

Before that, Sofia City Court joined the CCB majority shareholder, the company “Bromak”, owned by Tzvetan Vassilev, as a party to the legal proceeding, as well as the representatives the Oman Fund, which owns more than 5% of the share capital in CCB.

Under the Bulgarian laws, the insolvency proceeding has to be suspended because an appeal was lodged with the Supreme Administrative Court against the revoking of the banking license of Corp Bank.

The insolvency proceeding will only resume after the Supreme Administrative Court (SAC) rules on the appeal and decides whether the license was withdrawn in compliance with the law or not. The appeal was submitted to SAC by the CCB majority shareholder against the Bulgarian Central Bank’s decision to withdraw the banking license of CCB.

Corp Bank’s majority shareholder, “Bromak” will seek international experts to check whether the capital of the bank was really negative. So far, in addition to the appeal, which led to the suspension of the case against Corp Bank, 22 more appeals were submitted against the decision of Bulgaria’s central bank to withdraw the license.

For this reason, the main parties to the dispute: the claimant, Bulgarian National Bank (BNB), which requested the Corp Bank to be declared insolvent and the defendant, the company “Bromak, which obviously is appealing the insolvency decision, cannot forecast how long the lawsuit concerning the revoked banking license would stay with SAC. “Bromak” filed the appeal last week.

The insolvency proceeding will only go on after SAC rules on all the appeals, on two instances. According to lawyers, this may take a long time. After the ruling of SAC, the case will be returned to Sofia City Court, where the deadlines, as prescribed by the law on banking insolvency, are short – in one sitting the court would open the proceedings, determine the initial date of the insolvency and declares the bank insolvent. On the following day, a copy of the court’s judgment will be sent to the Bulgarian Deposit Insurance Fund and it will appoint assignees in bankruptcy to deal with the management of the bankrupt financial entity.

The court’s move will have no impact on the payout of the guaranteed deposits, which is scheduled to start on 4th of December.

Чуйте последните новини, където и да сте!
Последвайте ни във Facebook и Instagram
Следете и канала на БНТ в YouTube
Вече може да ни гледате и в TikTok
Намерете ни в Google News