KTB Majority Shareholder to Demand Int'l Expertise on Bank Insolvency

Politics » DOMESTIC | November 24, 2014, Monday // 13:24| Views: | Comments: 0
Bulgaria: KTB Majority Shareholder to Demand Int'l Expertise on Bank Insolvency Menko Menkov (L), one of Bromak EOOD's lawyers. Photo by BGNES

Bromak, the major shareholder at Corporate Commercial Bank (KTB), is to request an international report on whether the bank's capital is a negative equity, the company's lawyers said on Monday.

Comments from Menko Menkov and Tervel Georgiev followed a decision of the Sofia City Court to halt the insolvency proceedings started by the Bulgarian National Bank (BNB).

The court cited last week's appeal lodged by Bromak, owned by Tsvetan Vasilev, against the proceedings.

The KTB case is to continued after the Supreme Court of Administration has had rulings on all appeals submitted so far, a process which could last "a long time," lawyers suggest.

Menko Menkov added a team of "20 lawyers" had worked around the clock "for more than two weeks" on the appeal which was submitted last week.

In his words, the bank was "in an exceptionally good financial state as of June 20, 2014", when it was placed under special supervision.

Menkov described KTB's Supervisory Board as "incompetent" and the decision to scrap the bank's license announced November 6 as "lawless".

The BNB cited Corpbank's capital becoming a "negative equity" as a reason to revoke its license, referring to what it and the auditing companies describe as a BGN 3.74 B gap.

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Tags: Bromak, Corporate Commercial Bank, KTB, Sofia City Court, insolvency proceedings, Tsvetan Vasilev
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