CORPORATE COMMERCIAL BANK DECLARED INSOLVENT

On 22nd of April, Sofia City Court declared Corporate Commercial Bank (CCB) insolvent and ruled the termination of its activities.

6th of November, 2014 - the day on which CCB’s license was revoked - has been set as the date since the bank has been insolvent. The court issued a restraining order and distraint on the CCB’s assets and start monetizing of assets.

Bulgaria’s Finance Minister commented that complex and long procedures would begin to collect and then sell assets in order to pay back to all creditors. He explained that the interim receivers Rossen Angelchev and Lazar Iliev were likely to be appointed as permanent receivers and in court they would challenge transactions carried out after 6th of November and which favoured one creditor at the expense of another.

On 6th of November, 2014, the BNB Governing Council revoked CCB’s banking license and on 7th of November, a petition for opening of insolvency proceedings against CCB was submitted to Sofia City Court. On 24th of November, Sofia City Court stopped the legal proceeding against CCB until the Supreme Administrative Court (SAC) rules on the appeal against the revoking of CCB’s license. The proceedings were resumed after the Supreme Administrative Court ruled on 2nd of April to reject the appeal.