Bulgarian billionaire Vassil Bozhkov has reduced his stake in Holding Roads from 10.57% to 0.79%, the company announced.

Last Thursday Bozhkov transferred 3 million shares in Holding Roads (9.78%) to Mak Cap EAD at BGN 1 apiece, the statement said.

The holding shed 4.2% of its market value on Tuesday, down to BGN 0.62 per piece.

The bank accounts of Holding Roads, controlled by Bulgarian billionaire Vassil Bozhkov, have not been frozen, representatives of the United Bulgarian Bank announced in the middle of October last year, denying earlier reports.

The holding shed 70.92% of its market value over one week that month.

Meanwhile an Elana trading analysts' review of indebted companies according to the main indices of the stock market SOFIX and BG40 showed that Evrohold Bulgaria, Petrol, Holding Roads and Kaolin are the companies with higher levels of debt as compared to the resources available.

According to the analysis the holding companies with bigger and more complicated structure will be closely monitored by investors and their shares will most probably lag behind the developments of the market in the mid-term.

Reports of Holding Roads frozen bank accounts surfaced days after Moststroy AD, a construction company believed to be controlled by Vassil Bozhkov, filed for bankruptcy after all its bank accounts were frozen because of unpaid debts.

A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it had no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them.

Analysts commented that the file for insolvency of Moststroy AD was very bad news for the Bulgarian capital market, but comes as no surprise. The precedent was feared to further dent the trust of the investors, particularly those from abroad, and make it more difficult to get credits from banks.

Sofia City Court however rejected the application for insolvency by Moststroy AD, saying it has decided not to presume insolvency as the company has sufficient assets.

Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan.