Court Discontinues Corpbank Insolvency Case
Awaiting Solution of
Administrative Dispute
Sofia, November 24 (BTA) - Sofia City Court Monday announced
that it is putting on hold the insolvency case of Corporate
Commercial Bank (Corpbank) to wait for a decision in an
administrative case in which the majority owner of the bank is
challenging the decision for its delicensing.
On Novemeber 24, Sofia City Court was due to hold its first
hearing on the Corpbank insolvency case.The bank's majority
owner is Tsvetan Vassilev through his company Bromak. His
defence counsel, Menko Menkov, said Monday that tens of
shareholders and depositors, including Corpbank staff members,
are contesting before the administrative court the decision of
the central bank to revoke the licence of Corpbank. Menkov also
said that a team of more than 20 lawyers worked on preparing the
appeal against the bank delicensing.
Bromak claims that Corpbank should not have been closed down and
was in "extremely good shape" on June 20 when it was put under
special supervision by the central bank.
Menkov recalled an interview by the central bank vice governor
in charge of banking supervision, Tsvetan Gounev, as saying that
as of June 20 Corpbank needed no more than 500 million leva to
overcome the initial pressure from the bank run. "The State was
asked and should have offered support to prevent an aggravation
of the situation at Corpbank," the lawyer added.
He added that his clients will ask an accounting and auditors'
assessment for the Corpbank case with the participation of
international experts. They will be asked to determine the
timing of the worsening of the capital inadequacy of the bank
and what caused it. LI/LN/
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