Borislav Boyanov & Co.



The leading bankruptcy practice of Borislav Boyanov & Co. is focused on bankruptcy proceedings against Bulgarian banks and companies and acquisition of assets and on-going business of insolvent companies. The volume of work handled by the firm continues to expand, rendering services predominantly to foreign companies or their Bulgarian subsidiaries. The Bankruptcy Practice is closely related to the Banking, Finance, Commercial, Property and Litigation Practices, as far as the success in this area requires complex knowledge and experience. We assist our clients in the enforcement of their rights against the insolvent entity, and in structuring their claims in the most effective and safe manner. Our services in this area include:

assisting banks and other corporate lenders in taking effective security of their claims

advising banks and other corporate lenders on the enforcement of security and other rights against borrowers

pre-bankruptcy negotiations and rescheduling of debt

preparation and filing applications for the initiation of bankruptcy proceedings

advising on all aspects of the litigation by or against the insolvent entity

representation of creditors in bankruptcy proceedings including representation at Creditors' Meetings and Committees

advising on and preparation of rehabilitation plans

advising on arrangements with creditors, property issues and bankruptcy problems on the financial markets

advising on debt - for - equity swaps, debt - for - debt swaps and similar

advising on and assistance in the implementation of liquidation plans including the purchase (sale) of the on-going business and/or assets of the insolvent entity

collection and repatriation of proceeds from the liquidation of the bankruptcy estate

advising directors on their duties in relation to possible bankruptcy

The firms practice is noted for both the quality of the work undertaken and its broad range. Over the last years the firms lawyers have worked on many of the largest and most complex bankruptcy cases in Bulgaria. As an example: Borislav Boyanov & Co.
represented and assisted 14 creditors holding over 65% of the claims of foreign banks against Mineralbank and Economic Bank, two of the largest state-owned commercial banks. Borislav Boyanov & Co. provided legal assistance to the Spanish credit insurance agency (CESCE) and the Italian state owned foreign credits insurance agency SACE in connection with the transformation of their claims into state debt. The firm has been representing some of the largest foreign creditors of Balkan Bulgarian Airlines.

Bulgarian Business Fear Wave of Bankruptcy in EU


Bulgarian businesses are afraid of a wave of bankruptcies once the country is in EU and also a possible delay of the entry by a year.
These and other apprehensions of 1000 senior managers from various economic sectors were reflected in the annual survey Business Barometer carried out by an association of university professors.

Some 30% of approached managers said they do believe in the enlarged opportunities once Bulgaria gets access to the EU common market, but a total of 37.3% feared Bulgarian business would be incompatible to their European peers.

The percentage of optimists believing in their equal competitive potential stood at 4.2%.

Nearly half of respondents - 44.6% - said the EU entry of the country would produce a wave of bankrupt enterprises here against 3.9% more optimistically thinking businessmen. More than 50% of approached however appeared to be not categorical whether the accession would be more advantageous than disadvantageous to local competitiveness.

The percentage of pessimism concerning the date of Bulgaria's entry to the bloc appeared to be higher than that of optimistic views, as 44.2% expected the country would be delayed for 2008. On the other belief were found to be 42.9% of respondents who are more prone to think Bulgaria will become a EU member on 1 January 2007.

19:29 Gepost door MI5 in Actualiteit | Permalink | Commentaren (9) | Tags: borislav boyanov |  Facebook |


Bulgaria Before World War II, Bulgaria was an agricultural country, consisting mainly of small peasant farms; farming provided a livelihood for about 80% of the population. After the war, the Communist regime initiated an industrialization program. By 1947, a sizable portion of the economy was nationalized, and collectivization of agriculture followed during the 1950s. Until 1990, the country had a centrally planned economy, along Soviet lines, and its sequence of five-year economic plans, beginning in 1949, emphasized industrial production. In 1956, according to official Bulgarian statistics, industry contributed 36.5% of national income, and agriculture and forestry, 32.9%; in 1992, the respective contributions were 42.5% and 12%.

Although Bulgaria has brown coal and lignite, iron ore, copper lead, zinc, and manganese, it lacks other important natural resources and must export in order to pay for needed commodities. Because it relied on the USSR and other CMEA countries for essential imports and as the major market for its exports, and lacks foreign exchange, the Bulgarian economy was greatly influenced by the breakup of the Soviet bloc and the switch to hard-currency foreign trade. In the 1970s, the economic growth rate was quite high (6.8% annually), but the pace of growth slowed in the 1980s, mainly because of energy shortages. The average annual growth rate was only 2% in that decade.

With the disintegration of Soviet-bloc trade and payments arrangements, GDP declined by about 10% in 1990, 13% in 1991, 8% in 1992, and an estimated 4% in 1993. Meanwhile, Bulgaria began an economic reform program supported by the World Bank and IMF. But the economy remained largely state controlled, although there was progress in privitizing many smaller enterprises. The private sector accounted for only about 20% of GDP in 1993 and 45% in 1996. Efforts at economic reform stalled in 1994 as the Socialist government again failed to privitize state owned industries and institute structural reforms aimed at creating a market economy. The economy was further plagued by wide scale corruption among businessmen from the former Communist Party who stripped state enterprises of their assets and transferred the funds out of the country. By 1997, the Bulgarian economy was at the brink of collapse with inflation at 300%, the banking system in chaos, and the government on the verge of bankruptcy. Bulgaria became the poorest country in Europe with average monthly wages of $30 a month.

Angry with the governing Socialists, tens of thousands of Bulgarians demonstrated in the capital calling for early elections. In April of 1997 a new government took power and instituted structural reforms designed to bring order to the economy. The government of Prime Minister Ivan Kostov, quickly moved to implement market reforms. While operating under the direction of an IMF currency board, Bulgaria pegged the lev to the deutschmark (and now also to the euro), and reduced inflation to 1%. In 1997, the private sector accounted for 65% of GDP. This milestone marked the first time in the post-communist era that the private sector outperformed the public sector in production. In addition to structural reforms, the Kostov government also moved to combat corruption by becoming the first non-OECD country to ratify the anti-bribery convention.

As of 2003, industry increasingly was being privatized, and agriculture was almost completely privatized. Bulgaria started accession talks with the EU in 2000, but was not one of 10 new countries formally invited to join the body in December 2002. If Bulgaria completes its accession requirements, it is expected to join the EU in 2007, along with Romania. Bulgaria's laws are being harmonized with EU laws, and customs barriers between them are breaking down. By the end of 1999, more than 50% of Bulgaria's exports went to EU nations.

Following the 2001 elections that brought Simeon Saxe-Coburg to office as prime minister, the stock market soared 100%, but the government in 2002 was unable to live up to its pledge to improve living standards. Foreign direct investment rose modestly in 2002, and although economic growth slowed that year from its 5.8% high in 2000, it was higher than that of many other European countries. Tourism was strong in 2002, and although the weather was poor that year, Bulgaria's agricultural sector performed well. Taxes were lowered, and there is a zero percent capital gains tax on stock market investments. Small businesses are increasingly receiving credit. Corruption, however, remains a stumbling block to Bulgaria's economic success.


Gepost door: Jaapjejaap | 30-05-07

Bank for International Settlements

International Seminar on Deposit Insurance
Budapest, November 16 – 17, 2000

A Case of New Bank Bankruptcy Legislation

Presented by
Mileti Mladenov
Chairman of the Management Board

The Bulgarian legislator has traditionally considered the special nature of the business and legal status of banks as a type of merchant and prescribed special rules for the legal regime of bank bankruptcies. Under the Law on Banks and Credit Activity (passed in 1991), and subsequently the Law on Banks (passed in 1997), the bankruptcy procedure for a bank is regulated in a separate chapter in which special provisions are established regarding the banks, while for all unsettled issues one should refer to the general regulation on insolvency under the Law on Commerce.

The special provisions regarding the bankruptcy procedure for banks are aimed at ensuring the speed of the procedure and increasing control over the trustee’s activities. Analysis of the practice in applying the Law on Banks shows, however, that in fact such a speed is not achieved. Moreover, in many cases the trustees of the banks do not exercise their powers and do not perform their obligations with due care. Oversight of the trustee’s activity is exercised exclusively by the court. Under the provisions of the Law on Commerce, the court is the central body to manage bankruptcy proceedings. It has judicial and administrative functions. Combining judicial functions with functions of the operational management and control of the bankruptcy process burdens the court with acts that represent an evaluation of appropriateness. Such acts, by their essence constitute or represent typical administrative activity.

The resulting performance of such activity by the court is worse than unsatisfactory.
The activity of operational management and control is not a standard activity for the courts. It is related to the performance of preliminary in-depth investigation and examination to ensure the collection of reliable information. The judges do not have enough time, special training (financial, accounting, etc.), or the appropriate specialized control mechanism to perform administrative functions adequate to the volume, peculiarities, and complexity of legal relations that arise when a bank is declared bankrupt. The current legislative acts do not provide necessary procedures and mechanisms through which the court should exercise control over the lawful and suitable performance of the powers of the trustee. These weaknesses of the rules provided in the Law on Banks regarding the operational control over the trustee’s activity are also evident in the general rules of the bankruptcy procedure under the Law on Commerce. In the bankruptcy procedure for banks, however, the negative impact of these failures is especially strong due to the variety, specificity, and considerable property value of the rights included in the bank bankruptcy estate.

The Central Bank’s control powers, as well as those of the Deposit Insurance Fund provided for under the most recent amendments to the Law on Banks (from June 1999), did not lead to a material change in the quality of the bank trustees’ work, as the possibility for actual influence of these two controlling bodies on the trustee’s activities is mediated by the court, which manages the bankruptcy procedure.
Everything stated above leads to the conclusion that the approach used until now in the regulation of bank bankruptcy is not particularly successful and that a new special law is needed in which the procedure would be a complete regulation consistent with the peculiarities of banks as a special type of commercial enterprise.
These peculiarities predetermine a specific legislative approach, not only in regulating the grounds and procedure for initiating bankruptcy proceedings but also in providing for the purposes of the procedure, for the bank bankruptcy authorities and their powers, for the obligations of the bodies to preserve, manage, and enhance the bankruptcy estate, for the procedure for liquidating the bank’s assets, and for making the distribution.

The new Draft Law on Bank Bankruptcy attempts to improve the acting regulation, and where it has been established that this regulation is ineffective, to create a new regulation. The main points of the Draft are the simplification of the procedures for liquidation of the bank’s assets, limiting the expenses in the proceedings, and increasing the effectiveness of the control over the trustee’s acts. The drafters did not aim at creating a completely different regulation of the bank bankruptcy procedure compared to the existing one, starting from the assumption that the regulation of the bankruptcy procedures for the different types of commercial enterprises should rest on a uniform approach and common principles. In the Draft are reproduced many provisions of the Law on Commerce, but they are modified to suit the peculiarities of the bank bankruptcy procedure. The existing approach in the Law on Banks, to refer to all matters not specifically addressed to the provisions of the Law on Commerce, is abandoned.

Gepost door: Jaapjejaap | 30-05-07

SEELegal SEELegal
South East Europe Legal Group



- represented 14 creditors holding over 65% of foreign banks' claims in bankruptcy against Mineralbank and Economic Bank,
- advised the Spanish Credit Insurance Agency and the Italian state-owned foreign credit insurance agency, SACE, on the transformation of the debt of the insolvent debtor into debt of the Bulgarian government,
- represented several large creditors in the bankruptcy proceedings of the Balkan Bulgarian Airlines, the largest air carrier in Bulgaria,
- represented export credit insurance agencies, such as Turk Exim Bank, MEHIB (the Hungarian exports insurance agency), SACE in insolvency proceedings against Bulgarian debtors.


have amassed substantial experience in bankruptcy law and bankruptcy proceedings, represent foreign creditors against several Macedonian companies.


represent a consortium of 9 large European Banks led by Bank Austria and WestLB in their bankruptcy claims against a local steel company.

Gepost door: Jaapjejaap | 30-05-07

Privatization 'Restructuring the economy will provide an opportunity to speed up the processes of establishing market relations and reducing the managerial functions of the government which are contradictory to market economy. In its essence the privatization process is a restructuring of the state ownership. Therefore, liquidation and insolvency declaring are forms of changing state ownership which probably are more appropriate than privatization in terms of the methods of acquiring property. In this presentation I would like to consider in greater detail the programs for liquidation and insolvency declaring of unprofitable and inefficient state owned companies.

The termination by means of liquidation of unprofitable industrial companies with predominant state participation is an important element of the currently implemented structural reform in Bulgaria, and is also a part of the obligations to international financial institutions undertaken by our country.

On the basis of the set up overall organization for undertaking obligatory procedural actions, including legal regulations and by-laws adoption, organization, coordination and control, at present about 113 business companies of the Ministry of Industry are undergoing restructuring by means of liquidation.

... In conclusion, I would like to emphasize that companies will not disappear as operating economic units during liquidation and bankruptcy declaring procedures. The change of ownership will result in opening up new jobs, no losses will be incurred and, therefore, the state budget will not be burdened.'

Marin Marinov
Deputy Minister of Industry (Bulgaria)
23-24 November 1998

Gepost door: Jaapjejaap | 30-05-07


Sofia, September 18 (BTA) - The TSBank central office in Sofia
was besieged by depositors yesterday, "Standart News" reports today.
Frightened by rumours of an imminent bankruptcy of this financial institution, citizens lined up at early dawn to withdraw their savings. For the time being there are no restrictions to withdrawing leva deposits. For sums exceeding DM 1,000 depositors have to wait 1-2 days but payment of large foreign exchange deposits may take months. The TSBank branch in Plovdiv stopped paying foreign exchange deposits this week.

Gepost door: Jaapjejaap | 30-05-07

Bulgaria in EU EU Commissioner: No Turning Back for Bulgaria's Kozloduy Nuke Units

25 May 2007, Friday

There is not turning back for Bulgaria's Kozloduy power plant and its units 3&4 that were closed in January, EU Energy Commissioner Andris Piebalgs said Friday at the international conference on energy in Sofia.

The fate of Kozloduy was decided way back in 1999, he added.

He said units 3&4 will not be re-opened and this is the position of the European Commission, which he strongly supports. The issue will be discussed later in the day with Bulgaria's Prime Minister Sergey Stanishev.

The other topics that Stanishev and Piebalgs will discuss are the security of the energy supplies in Europe and Bulgaria's role in them.

"Your country has an extremely important geographical and strategical placement in the map of Europe for the transit of oil and natural gas," Piebalgs said and added that the country is energy-dependent on Russia because decades in the past the two countries connected their infrastructure.

Gepost door: jaapjejaap | 30-05-07

Varna te koop Bulgarije - Scheepswerf Varna te koop

De grootste Bulgaarse scheepswerf Varna Shipyard (opge-
richt 1907) is failliet en wordt door het ministerie van
Economische Zaken te koop aangeboden.

The Information Memorandum and the Assessment of the Market Value of Varna Shipyard Plc / in insolvency/ kunt u opvragen bij:

Petya Nestorova
Head of the Bulgarian Commercial Section
t 070-3468872; f 070-3636704 p.nestorova@tip.nl

over economie, sectoren en bedrijven:

Gepost door: Jaapjejaap | 31-05-07

Uitverkoop Yoegoslavië Op 23 september meldde Milos Markovic uit Belgrado in 'Die Junge Welt' het volgende:

" De tabaksindustrie is verkocht aan Amerikanen en Britten, de cementindustrie is volledig in West-Europese handen, de olie-industrie is in het bezit van buitenlandse firma's evenals de opwekking van elektriciteit, waarvan de opwekkingsbedrijven binnenkort verkocht zullen worden. De elektriciteitsprijs is nu hoger dan in de VS, wat een voorwaarde is voor de verkoop aan een Westers concern.

Bijzonder treffend is de verkoop van het staalbedrijf Sartid in Smederevo. De investeringen in dit zeer grote bedrijf bedroegen in 1999 en 2000 meer dan 250 miljoen dollar, voornamelijk gedaan door consortiums uit Duitsland, Oostenrijk en Nederland. De waarde van de jaarlijkse export bedroeg zo'n 150 miljoen dollar. De Servische regering verklaarde het bedrijf echter failliet en verkocht het, inclusief de havens van Smederevo aan de Donau, voor 21 miljoen dollar aan de Amerikaanse firma US-Steel.

De brouwerijen worden verkocht, de grootste Servische brouwerij aan een Belgische ondernemer en andere brouwerijen en wijnhuizen zullen volgen. Andere bedrijven, zoals de suiker-, koper-, voedingsmiddelenbedrijven worden voor een appel en een ei, soms voor 3 euro!, verkocht aan familieleden en favorieten van de huidige Servische leiders.

Maar niet alleen de industrieën ook de media vallen in handen van het internationale kapitaal."


Gepost door: Jaapjejaap | 31-05-07

Budapest Airport The sale of Budapest Airport Zrt. has not been closed yet

The Board of Directors of ÁPV Zrt. reviewed the negotiations on the subject of the envisaged sale of the shares of Budapest Airport Zrt. today, but did not adopt a final decision because the consortium of investors had not supplied all the required documents. The Board of Directors will re-address the issue in the Agenda of one of its future meetings and, provided that the consortium presents all related statements and documents in the required initialled form to ÁPV Zrt., the Board will make a decision. The approval of the Treasury Asset Management Directorate (KVI) will also be required for the decision approving the transaction.

The members of the new consortium expressing its investment intentions are Hochtief Airport GmbH, Caisse de dépot et placement du Québec, Kreditanstalt für Wiederaufbau and Malton Investment Pte Ltd., the investment company of GIC Special Investment Pte Ltd.

The consortium including both KfW and CdP, led by Hochtief Airport GmbH took part earlier in the privatisation tender of BA Zrt., and finished in second place.

As it is known, the privatisation contract signed in 2005 stated that the sale of the shares of the Company required the approval of the Hungarian State and the new owners must fulfil the obligations undertaken in the original contract.

5th April 2007

Gepost door: Jaapjejaap | 31-05-07

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