site.bta Sofia Appellate Court Sets Initial Date of Corpbank's Insolvency at June 20, 2014

Sofia Appellate Court  Sets Initial Date of Corpbank's Insolvency  at June 20, 2014

Sofia, July 3 (BTA) - The Sofia Appellate Court set the initial
date of Corpbank's insolvency at June 20, 2014, thus revoking a
judgment of the Sofia City Court which had set the date at
November 6, 2014.

Friday's judgment comes as a surprise, given that the central
bank and the trustees in bankruptcy held that insolvency
commenced on September 30, 2014, when reports showed that
Corpbank's own funds were negative.

The initial date of insolvency is key to determining the lawful
assignments and set-offs. Those concluded after the date of
insolvency can be easily contested in court.

On June 20, 2014, Corpbank (Bulgaria's fourth biggest lender)
suspended all operations after a panic run by depositors left it
 illiquid. The central bank's Governing Council withdrew
Corpbank's banking licence on November 6, 2014. The Sofia City
Court adjudicated the bank bankrupt on April 22.

The judgment of the Sofia Appellate Court will be entered in the
 commercial register with the Registry Agency. Afterwards it is
appealable before the Supreme Court of Cassation.

The trustees in bankruptcy said the list of allowed claims to
the bank will be published within 30 days as provided for by the
 Bank Bankruptcy Act.
***
As at June 30, 2014, the companies for which the Economy
Ministry exercises the State's ownership rights had a total net
exposure to Corpbank of 16.49 per cent, Economy Minister
Bozhidar Loukarski said at Parliament's Question Time on Friday.
 Those companies held 18,356,000 leva at Corpbank. Only
Industrial Zone Varna EAD exceeded the 25 per cent limit on net
exposure to Corpbank.