site.btaJustice Minister Hristo Ivanov Orders Removal of Controversial Trustee in Bankruptcy from Professional List

Justice Minister Hristo Ivanov Orders Removal of Controversial Trustee in Bankruptcy from Professional List

Sofia, January 12 (BTA) - Justice Minister Hristo Ivanov issued
an order for the removal of Panayot Velkov from the list of
persons, who can be appointed as trustees in bankruptcy under
the Commerce Act. The order will be executed in advance on the
grounds of Article 60 of the Administrative Procedure Code, so
as to prevent irreversible damage on companies, where Velkov is
appointed as interim trustee in bankruptcy, the Justice Ministry
said.

Panayot Velkov has worked together with Judge Roumyana Chenalova
on the case against a French company about which French
Ambassador here, Xavier Lapeyre de Cabanes, expressed doubts
about violations. Velkov is the temporary trustee-in-bankruptcy
who was granted the right to manage Belvedere Distribution and
Domain Menada and to dispose of their property by Chenalova on
November 28, 2014.

Information emerged about Velkov that he was regularly assigned
as a trustee in bankruptcy by Chenalova, including in the
bankruptcy cases of TV7 and the NEWS7 news website, despite his
limited professional experience.

The check of Velkov's operation started after several reports
within different cases submitted to the Justice Minister. The
caretaker cabinet check his overall performance as trustee in
bankruptcy within five cases. Exceeding of powers, undue signing
of contracts at the expense of the respondent-companies and
different actions, hindering considerably the companies'
business activity were established in the course of the check.

On one occasion, Velkov unduly publicized correspondence between
the companies and their lawyers within a report to the court
although the correspondence is protected under the law.

The Justice Ministry has launched a phased check of the
performance of all trustees in bankruptcy in Bulgaria.