site.bta Sofia Appellate Court to Decide on Corpbank Insolvency Case within Weeks

Sofia Appellate Court to Decide on Corpbank Insolvency Case within Weeks

Sofia, June 19 (BTA) - Within several weeks the Sofia Appellate
Court will come out with a decision about the date on which the
insolvency of Corporate Commercial Bank (Corpbank) will be
declared.

The trial was unprecedentedly conducted in front of the media
Friday, although practice shows such cases are considered behind
closed doors. The publicity was requested by the lawyers of
Bromak EOOD, the majority shareholder in Corpbank.

In late April, the Bulgarian National Bank (BNB) and the Sofia
City Prosecution Office appealed the judgement of the
first-instance court (the Sofia City Court), arguing that the
initial date of insolvency should be set at September 30, 2014,
when Corpbank reported negative own funds and negative capital
adequacy in its financial statements and supervisory reports.
According to Sofia City Court judge Ivo Dachev, the initial date
of insolvency is November 6, 2014, when Corpbank's licence was
revoked.

The prosecution and the Bulgarian Deposit Insurance Fund support
the position of BNB.

Lawyer Menko Menkov told journalists that he has a document from
the Commission for Public Oversight of Statutory Auditors,
according to which what auditors have done is a consultancy
service.

Bromak's lawyers requested the Sofia Appellate Court to suspend
the insolvency procedure, as well as the collection of new
evidence, in view of the fact that they have filed appeals with
the Supreme Court of Cassation. They also expressed doubts
whether Dachev's decision is legal because it was decreed while
he was on sick leave. Consequently, Menkov said the rights of
his clients could also be defended at the Human Rights Court in
Strasbourg.