site.btaSofia City Court Declares Corpbank Bankrupt

Sofia City Court Declares Corpbank Bankrupt

Sofia, April 22 (BTA) - The Sofia City Court has declared
Corporate Commercial Bank (Corpbank) bankrupt.
The court ruled that the bankruptcy began on November 6 2014.
Seizure has been imposed on the bank's assets, which will be
auctioned.The court's decision is appealable within seven days.

On June 20, 2014, Corpbank, Bulgaria's fourth biggest lender,
suspended all operations after a panic run by depositors left it
 illiquid. The Bulgarian National Bank placed (BNB) Corpbank
under special supervision for
 a maximum of six months to allow a thorough audit and possible
restructuring. The BNB Governing Council withdrew Corpbank's
banking licence on November 5, 2014, and the bank's bankruptcy
was petitioned on November 7. The majority shareholders in the
bank are Bromak EOOD, a Sofia-based non-bank financial
institution owned by Tzvetan Vassilev (50.66 per cent), and
Luxembourg-registered Bulgarian Acquisition Co., controlled by
the State General Reserve Fund of Oman (30.4 per cent).
   
Finance Minister Vladislav Goranov told journalists that
Corpbank's bankruptcy began on November 6 when its licence was
withdrawn. The Minister added that Corpbank's temporary trustees
 in bankruptcy will likely be appointed permanently.

Goranov said that complex court procedures will begin to recover
 all assets that have been siphoned off the bank and equally
meet the claims of all of its creditors including the Bank
Deposit Insurance Fund.

The Minister said that efforts will be made to challenge in
court all transactions which directly or indirectly impair
Corpbank's bankruptcy estate or favour one creditor at the
expense of another.