Sofia Court Suspends Insolvency Proceedings Against KTB

Sofia City Court has said it will have to suspend insolvency proceedings against Corporate Commercial Bank, or KTB, following an appeal by majority owner Bromak.

The court said it was informed on Wednesday that Bromak had filed an appeal with the Supreme Administrative Court (SAC) over the central bank’s decision to withdraw KTB’s banking licence, BGNES reported on Thursday.

Under Bulgaria’s Law on Bank Bankruptcy if a central bank’s decision to scrap a lender’s banking licence “has not entered into force due to a judicial appeal, the court shall suspend the proceedings until the end of the administrative legal controversy.”

The central bank revoked KTB’s banking licence on 6 November and asked Sofia City Court to declare KTB insolvent the following day.

The court was expected to start considering the central bank’s request in a closed door-session on 24 November 2014.

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