Insolvency

Changes to bankruptcy legislation that have been put up for consultation provide for banks to be able to initiate and have the final say on the streamlining of an enterprise, ranging from the restructuring or capitalization of its debts to the company's sale to a third party.

Greek taxpayers with small arrears worth 5,000 Euros and over could face the prospect of speedy seizures or having their bank accounts frozen starting from January 1 of the next year.

The receivers of insolvent Corporate Commercial Bank (Corpbank or KTB) have made public a report tracking the assets of Bulgaria's fourth-largest lender.

An English-language version of the final report, prepared by UK-based consultancy AlixPartners in September 2015, had been initially submitted to Parliament's Secret Registry to be read by lawmakers only.

These days, there is a fear among creditor banks and companies that the companies they are doing business with could appeal for a suspension of any declaration of bankruptcy. If this situation turns into an epidemic, then it may well be a nightmare for commerce and economy in general.  

Bulgaria's Finance Minister Vladislav Goranov has sent to Parliament the report of AlixPartners Services UK LLP report on tracking the assets of insolvent Corporate Commercial Bank (KTB).

The government spokeswoman Olga Gerovassili said to ANT1 TV channel that “Bad loans are the government’s main priority,” adding that this issue will be dealt with sensitivity and low and middle income classes will be protected and they “will not lose their homes”.

Bank Insolvency Act amendments aimed at allowing easier access of creditors to information related to the insolvency proceedings passed second reading in Parliament on Wednesday.

Under the newly adopted provisions, the list of creditors who have submitted claims against a bank undergoing insolvency proceedings will be published in the Business Register.

It is difficult to understand why there is so much jubilation in Cuba or among Turkey's romantic socialists over the Greek "oxi" (no) vote and the subsequent developments in Greece. Does Greece have an incredible amount of debt? It does. Should it pay it? It should. Can it compare the situation with the post-war situation and the conditions Germany and the World War II victors "agreed" upon?

Workers at Dita, a once famous detergent company in the northwestern town of Tuzla, are celebrating after the company's creditors decided not to liquidate the firm and sell its assets, but seek a strategic investor who would keep on all the current employees.

"We won," Dzevad Mehmedovic, head of the trade union of Dita workers, told BIRN on Wednesday.  

Noted French economist Thomas Picketty this week reiterated his proposal for a major European summit to deal with European debt issue, while stressing that such a venue should aim for a significant “haircut” of Europe’s total debt.

Moreover, Picketty sharply criticized Berlin’s handling of the Greek issue.