The Sofia City Court has declared the state of bankruptcy of Bulgaria's Corporate Commercial Bank (KTB) and announced the initial date of its insolvency was November 6, 2014.

Despite the fact that the decision can be appealed in the Sofia Court of Appeals, it will be implemented immediately, the Bulgarian National Radio (BNR) reported. The Bulgarian National Bank (BNB) has the right to object the decision, and so do the Prosecutor's Office and the supervisors, who according to a number of analysts will not use the option.

The date chosen - November 6, is in fact the date on which the license of the bank was officially revoked.

Judge Ivo Dachev announced the decision of the Sofia City Court stating that any payment executed on behalf of the bankrupted bank from now on will be deemed illegal. All agreements contracted after November 6, 2014 will be voided, regardless of their nature - whether they concerned loan, mortgage or any other type of agreement.

On June 20, 2014 KTB was assigned for special supervision, and on September 30 investigators established that the capital of the bank is not available. Judge Dachev explained that the bankruptcy has been declared as of November 6 on account of the fact that prior to that date the Bulgarian National Bank still had the operational mechanism to secure the bank's future.

The two-month deadline for bank creditors can submit their demands for monetary compensations on their investments can be submitted to the state-appointed syndicate on KTB. The Fund for Deposit Guarantees can now officially appoint a specialized syndicate to evaluate all the assets currently available.

According to expert legal advisers, if all state procedures are complied with in time, creditors will be able to receive their money back no earlier than a year and two months from now.