Peevski Act restores BGN 1,25bn to CorpBank

Peevski Act has helped to restore BGN 1,25bn to CorpBank reduced to bankruptcy by Tsvetan Vassilev, the bank reported. The statement reads that the bank’s revenue receipts have increased by €125m. After years-long litigations in Bulgaria and UK on 7 May 2020, nearly €125m arrived in the account of CorpBank AD (under insolvency), the sum with which in 2012 the bank financed the acquisition of the majority stake in the Bulgarian Telecommunications Company. 

This positive outcome is a great success both for the bankruptcy administrators and for thousands of the bank’s depositors because with the receipts worth almost €125m the collected funds in the insolvency estate of CorpBank have increased significantly along with the sum that will be distributed among all creditors together with the approved claims.

Sources of CorpBank specified before Telegraph Media that namely Peevski Act has played significant role in restoring the money as it helped to stave off the secondary plunder of the bankrupt lender. BGN 1,25bn collected after the CorpBank collapse are the result of the bankruptcy administration’s efforts aimed at replenishing the insolvency estate through loans provided by the bank, redemption of assets and declaring null and void the setoffs. The amendments to the Bank Insolvency Act adopted by the Parliament in 2018 and promulgated on 13 March 2018, have contributed a lot to it.  

The amendments were proposed by MPs of the Movement for Rights and Freedoms Delyan Peevski, Hamid Hamid and Yordan Tsonev. Two years ago, the bankruptcy administrators announced the first partial allocation account amounting to BGN 570m. The money on it is almost completely transferred to the accounts of the creditors of the bank in accordance with their share in the total amount of money owed by the bank, as the largest amount - nearly three-quarters of the funds goes to the deposit guarantee fund.

The fresh revenue receipts will enable the bankruptcy administrators to announce another similar or even larger allocation account, up to BGN 700m, and to have enough money left for the maintenance of the ongoing insolvency proceedings.

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