KTB Owner, Executives Appeal Bank's Insolvency

Business » FINANCE | April 29, 2015, Wednesday // 12:08
Bulgaria: KTB Owner, Executives Appeal Bank's Insolvency Corpbank's headquarters in downtown Sofia. Photo by BGNES

Bromak EOOD, the majority owner of collapsed Corporate Commercial Bank (KTB or Corpbank) and its executive officers are appealing last week's court ruling which declared the bank insolvent.

This was revealed by Menko Menkov, a lawyer for Bromak which is owned by Bulgarian businessman Tsvetan Vasilev.

On April 22 the Sofia City Court announced KTB, which had been under conservatorship by the central bank BNB since a run on its deposits in June of last year, was deemed insolvent as of November 6, 2014. This date is when the license of Corpbank was revoked.

The Bulgarian National Bank (BNB) disputes the initial date, arguing the date should be September 30, when KTB first declared negative equity. The Sofia City Prosecutor's Office also supports this.

The appeal filed by both Corpbank and its directors is against the insolvency itself and has nothing to do with the date.

In a statement sent out to media outlets, lawyer Menko Menkov, says that the majority owner and KTB's executive officers will pursue the defense of their interests "only through legal means".

He claims key documents submitted by the defense are now missing at the court.

Menkov has also called on Sofia City Court authorities to put an end to the disappearance of "deposited documents of KTB shareholders", a "vicious practice now turning into a regular one".

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Tags: KTB, Corpbank, Tsvetan Vasilev, BNB, Menko Menkov, Bulgarian National Bank, conservatorship, special supervision, Bromak

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