Bulgarian Court Upholds Revoking of KTB’s Banking Licence

Business » FINANCE | January 13, 2015, Tuesday // 18:40
Bulgaria: Bulgarian Court Upholds Revoking of KTB’s Banking Licence

Bulgaria’s Supreme Administrative Court (SAC) on Tuesday upheld the central bank’s decision to cancel the banking licence of collapsed Corporate Commercial Bank (Corpbank).

The decision can be appealed before a five judge-panel of the SAC within seven days.

The upholding of the decision by the five-judge panel will open the way for the resumption of insolvency proceedings against Corpbank, or KTB, launched by the central bank at Sofia City Court.

The SAC has decided not to consider the appeals against the revoking of the licence filed by the bank’s two biggest shareholders - Bromak EOOD and Bulgarian Acquisition Company II S.a.r.l as well as two Bulgarian individuals, BGNES news outlet reported.

According to the motives of the three-judge panel, “the shareholders have no direct and personal legal interest in appealing the central bank’s decision to strip KTB of its licence; they have been indirectly affected by the special measures taken by the supervisory body”.

One of the three judges has signed the decision with reservation, citing a 2005 ruling by the European Court of Human Rights on a similar case involving Bulgaria's Capitalbank.

Bromak EOOD, a company of Bulgarian businessman Tsvetan Vasilev, is KTB’s majority owner. Luxembourg-based Bulgarian Acquisition Company II S.a.r.L. is an entity indirectly controlled by the State General Reserve of the Sultanate of Oman.

Vasilev has been known to be living in Serbia over the past months pending a court ruling on a Bulgarian prosecutors’ request for his extradition on charges of embezzlement.

The Bulgarian National Bank (BNB) decided in November  2014 to revoke the banking licence of KTB and launch insolvency proceedings against the country’s fourth-largest lender. The move came after the BNB seized control of KTB in June following a bank run.

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Tags: Tsvetan Vasilev, Corpbank, Corporate Commercial Bank, BNB, KTB, Bromak, insolvency proceedings, banking licence, revoking, Bulgarian Acquisition Company II, Bulgarian National Bank
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