Bulgarian meats producer Roon Food goes insolvent Bulgarian meat products producer Roon Food, operating under the Bravo brand name, was placed into insolvency. The company stopped paying its debts back in 2010 and owes some BGN 28 million to creditors. A private enforcement agent has requested a ban on the sale of Bravo branded products. The company lost rights on the brand in April 2013. The company’s loss for 2011 amounted to BGN 51,000, which was double the year-earlier losses.
Source: Capital (06.01.2014)

BSE’s management changed Ministry of finance wants to replace Asen Yagodin, Vasil Golemanov and Georgi Bulgarski from BSE’s Board of directors. This is evident from materials of appointed for the 14th of January General meeting. The ministry’s plans are Ivan Takev and Lyubomir Boyadziev to withhold their posts. For new members of the Board of Directors the following members are proposed: Gergana Beremska-Karadzhova, Ivan Kutlov and Dimo Spasov. Dimo Spasov has been a chairman of Management Board of the Bulgarian Development Bank from 2013. Ivan Kutlov has 18 years experience in UBB, while Gergana Beremska-Karadzhova has been CEO of D Commerce bank from April to November 2013, as well as a member of its management board from 2008.
Source: investor.bg (07.01.2014)

Bulgaria’s FiBank signs deal with EIF to back SMEs under RSI Bulgaria’s First Investment Bank [BUL:5F4] (FiBank) said it has signed a guarantee agreement with the European Investment Fund (EIF) under the risk sharing instrument (RSI) to support small and medium sized enterprises (SMEs). The funding is the first one for Bulgaria under the seventh framework programme for research and development FP7, FiBank said in a press release on Thursday. The agreement will allow FiBank to on-lend funds within the next two years of up to 15 million euro ($20.4 million), half of which will be covered under the guarantee, to companies across the country undertaking research, development or innovation projects, the bank said. The RSI aims to encourage banks to provide loans to SMEs and small mid-caps of up to 7.5 million euro. It is the result of cooperation between EIF, the European Investment Bank (EIB) and the European Commission. The guarantee covers up to 50% of the outstanding amount of each loan. EIF is European Investment Bank Group's specialist provider of small and medium-sized enterprises risk finance across Europe.
Source: Capital (10.01.2014)

Bulgarian hotel Rodina again put up for sale at up to EUR 11.8 mln Indebted Bulgarian four-star hotel Rodina in Sofia has been put up for sale after it attracted no bidders for the second time at an expected starting price under BGN 23 million, down 20% from its last auction price. The hotel, which has run up EUR 9.6 million in debt, will be auctioned again in February. The price is getting close to the amount owed by the hotel and the hotel is expected to attract buyers this time. Rodina was put up for sale without any result three times last year since it was said to be highly priced. At the first auction, its starting price was set at BGN 44.4 million, which was later cut to BGN 35.5 million at the second auction and to BGN 28.4 million at the third one. Rodina hotel covers an area of some 50,000 square metres and has more than 500 rooms.
Source: Capital (12.01.2014)

Hotel Rodina in Sofia put up for sale at EUR 12 mln Indebted four-star hotel Rodina in Bulgaria's capital Sofia was put up for sale again at a starting price of BGN 22.72 million, value added tax (VAT) included, a public auction notice showed. Bids for the 46,805 square metre Rodina hotel can be placed from March 7 until April 7, a notice published on the website of the Bulgarian Chamber of Private Enforcement Agents last week indicated. The winner will be named on April 8. Three attempts at the sale of the hotel last year proved unsuccessful. At the first auction, the starting price was set at BGN 44.4 million, which was later cut to BGN 35.5 million and then to BGN 28.4 million. Rodina has 500 rooms and six suites. In January local newspaper Capital Daily said the hotel's debts total EUR 9.6 million.
Source: investor.bg (10.02.2014)

Bulgaria selects co to prepare due diligence for sale of stock exchange, central depository Bulgaria’s privatization watchdog said on Thursday it has selected a local tie-up to prepare due diligence for the privatisation of 50.05% of Bulgarian Stock Exchange-Sofia and 43.7% of Central Depository. Kamburov-European Programme Advisory Main Capital has been selected over the remaining three candidates GIVE Consult; Ernst&Young Bulgaria and law firm Sabev& Partners; and First Financial Brokerage House and law firm Tsvetkova, Bebov&Partners, the Bulgarian Privatization and Post-Privatization Control Agency said in a press release. Last November, the privatization watchdog said Bulgaria plans to put up for sale its stakes in BSE and the Central Depository.
Source: Capital (21.02.2014)

After Gabrovo-based Kapitan Dyado Nikola factory specialised in the manufacture of PVC pipes and fittings sold its main machinery and the apartments where its workers lived, the factory is about to lose its manufacturing base. A private enforcement agent has put the factory for sale due to bank debts. This is not the first attempt at selling the factory but the price now is more attractive, which is 20% lower than the first one – BGN 5.4 million compared to BGN 6.4 million. Kapitan Dyado Nikola factory sold property for BGN 7.4 million as of December 31, 2012. It also sold machinery worth for BGN 1.4 million last year. It sold its property and machinery because of debts with Raiffeisenbank and United Bulgarian Bank (UBB). Managers of the company said that the difficulties it faced were caused by the financial and economic crisis.
Source: Capital (24.02.2014)

UBB sells unfinished factory for refrigeration equipment Company for refrigeration equipment Frigus is put for sale due to unpaid debt to UBB. The bank insisted on sale of buildings and plots of the company in Sofia after delayed payments under several loans. The initial price of the 6.3 acre property and buildings on it is to the amount of BGN 6.23 million. Frigus is no more operational. Financial data shows high obligations, as well as more than ten times decrease of revenues and losses for 2012 and 2011. The company’s unfinished building should have been an enterprise for refrigeration equipment under the name of Framo, as well as to serve as extension of the existing warehouses. The new factory is finished till rough construction back in 2009 and has gross floor area of over 5 acres. Companies Framo and Frigus are owned by Georgi and Konstantin Piperovi. Framo has assåts of BGN 504 thousand towards the end of 2012. Frigus was representative of Italian producer of refrigeration equipment ARNEG SpA and of Austrian company BITZER. The term for handing out offers is 7th of March.
Source: Capital (24.02.2014)

One of the first meat processing plants with EU certificate put up for auction by UBB United Bulgarian Bank (UBB) has put up for auction the assets of Mesocentrala Montana Ltd. ,one of the first meat processing plants in Bulgaria with EU license, for BGN 7.73 million. The company owes UBB nearly BGN 12 million. Mesocentrala Montana went bankrupt in February 2013, but according to UBB data production had wrapped up back in early 2010. UBB officials said they had attempted to sell the assets of the company at least in four previous auctions.
Source: Capital (24.03.2014)

National Guarantee Fund to partner with 10 banks on a business loans scheme National Guarantee Fund (NGF), a subsidiary of Bulgarian Development Bank (BDB), has signed a partnership agreement with ten commercial banks, under which the lenders will be granting business loans secured by the Fund. The maximum amount of loans up for grabs under the scheme is BGN 360 million. The ten banks are BACB, Investbank, UBB, Fibank, Piraeus Bank, Cibank, TBI Bank, Tokuda Bank, UniCredit Bulbank and Eurobank. Guarantees issued by NGF are free of charge for companies and will help them negotiate better borrowing terms. NGF will take the risk on its guarantees and will accept as collateral assets that its partnering banks would accept, NGF’s executive director Samuil Shiderov explained.
Source: Standart (26.03.2014)

Lyudmil Stoykov buys Rodina hotel After three unsuccessful attempts for sale, Sofia-based hotel Rodina will soon have a new owner. Lyudmil Stoykov is the buyer. He is also owner of holiday village Duni. Stoykov handed out his bid in the fourth in sequence procedure for public sale of the hotel, organized due to unpaid debts to UBB. Two bids were handed out till expiration of the deadline on Monday. Lyudmil Stoykov has been selected for Rodina’s new owner, as his offer was to the amount of BGN 25 million. It is handed out via the company Duni and is slightly over the announced price of BGN 22.72 million with VAT. The other bid mas made by the bank in order to stop the future drop in price in yet another tender if no buyers appear. With the deal for Rodina hotel debt to UBB most probably will be paid entirely. Owner of the four-star hotel is Rodina touristic. In the past few years the hotel doesn’t make well on the market, as it revenues are constantly falling. In 2012 they were to the amount of BGN 3.73 million.
Source: Capital (08.04.2014)

Burovi’s palace sold for BGN 200 thousand A Sofia-based company has bought Burov’s palace that is locate in Ruse for BGN 200 thousand. The sale is initiated by United Bulgarian bank, as the previous owner of the property had unserviced debt to the bank to the amount of BGN 520 000 thousand. The ex-owner is a company to the name of Aktinia-2. The new owner of the venerable building is Imbility LTD. Sofia-based company that is engaged in consulting was the sole candidate that handed out offers at the set for 28th of January public tender. The property, located at 16 Atanas Burov street has an area of 1644 square meters. The announced price at the fourth in row public sale was BGN 200 000. In fact Imbility got a two-storey house and the yard to it. Burovi’s inspiring building was constructed in 1908 by architect Yanovich.
Source: Monitor (10.04.2014)

On April 16 was held the final meeting of creditors of the former refinery Nova Plama JSC. This happened in the Hall ¹ 8 District Court - Pleven, and the meeting was attended by Judge Sylvia Krusteva, representatives of NRA - Sofia, in the person of Alexander Kolevski, Krasimir Yanev lawyer representing the UBB JSC and administrators Valentin Georgiev and Tsvetan Bankov. We remind that the bankruptcy of Nova Plama JSC started in 1998. Later was adopted a reorganization plan for the company, but in 2006 part of the creditors filed a request that the proceedings be resumed as adopted recovery plan is not implemented. In renewal of production following the adoption of a recovery plan, the law does not allow for a second recovery plan, so the only option is realizing the assets of the former refinery and declaring it bankrupt. At the closing meeting of creditors was discussed and adopted the report of the trustees, which was concerned with the allocation of amounts from the liquidation of the assets of the company and the fact that the mass bankruptcy is exhausted. Judge Krusteva said the amount paid to the creditors of the former refinery Nova Plama JSC is about BGN 45 million and in the account of the refinery were left only BGN 32.25. This amount will be distributed as BGN 12 will go for taxes until the decision to end the proceedings enter into force and BGN 20 will be needed for closure of the company account. Proceeds from the liquidation of assets of Nova Plama JSC are allocated to banks, public debts, i.e. state and municipal debts, expenses in the bankruptcy proceedings, and to pay former employees in the enterprise, as only principals are paid. According to the receivers, there is no place for objections because whatever funds were available all was paid and distributed, and of course there is no way the money will be refunded to creditors at 100%.
Source: Posrednik-Pleven (24.04.2014)

Sevlievo-based cable manufacturer Emka AD reported weaker sales and lower profit in the first quarter of the year, according to the company’s financial report. The firm saw its exports drop, while sales at home picked up. Interest rate payments increased slightly, although its long-term debt spiked to BGN 3.5 million. The company repays two investment loans, taken from UBB (EUR 416,400) and Citibank (EUR 1.79 million). Despite the numbers, Emka AD is optimistic about its future. Back in 2007 it began updating its machinery and the process is still underway, backed by solid EU funding.
Source: Capital (28.04.2014)

Six banks provide services to the judiciary in Bulgaria Two-thirds of the judiciary in Bulgaria has picked six banks to run their financial affairs, Sega daily reads, quoting data provided by the Supreme Judicial Council. UniCredit Bulbank leads the chart with 83 courts and prosecutor’s offices, followed by UBB with 58, DSK Bank, Central Cooperative Bank, SG Expressbank and Cibank, servicing between 37 and 20 judicial bodies each. All in all, the judiciary in Bulgaria uses the services of 15 banks, including BNB. The topic was brought to the public attention in early 2014, after some revelations about the newly appointed chair of the Varna Court of Appeal Vanuhi Arakelyan. According to reports, while she was on her previous job as head of the Regional Court, Arakelyan picked Corporate Commercial Bank for service provider, had her mortgage refunded by the same bank. She also took a EUR50,000 consumer loan from it with a preferential interest.
Source: Sega (28.04.2014)

Only a handful of state companies have not met the rules for deposits Eight companies from the energy, industry and transport fields violate the rules for the concentration of deposits, a government report by end-March shows. A few companies exceed the 25% limitation for the concentration of their funds in a single bank and in some cases the reasons are justifiable. Energy companies, the ones which hold the greatest financial resource, have kept their commitment to distribute their deposits in more than one bank. Thus the Bulgarian Energy Holding (BEH) has distributed its funds among five banks, while in March 2013 it kept 88.2% of its money at Central Cooperative Bank (CCB). Bulgartransgaz also abides by the rules. In end-December its net exposure to CCB was over 31%. The companies that still maintain a higher share of deposits at a single bank by end-March are State Consolidation Company, National Company Industrial Zones, Industrial Logistics Park – Burgas and LB Bulgaricum. LB Bulgaricum explained that the reason is a payment from a foreign contractor transferred in the last days of March, Capital daily reports.
Source: Capital (15.05.2014)

The second attempt to replace the management of the BSE-Sofia has so far been successful, it transpired in the end of the general meeting of its shareholders. Two from the total of three new members of the BSE Board of Directors are Dimo Spasov, currently Executive Director of the Bulgarian Development Bank (BDB), and Ivan Kutlov, Head of United Bulgarian Bank (UBB)’s Treasury Department.
Source: Capital (04.06.2014)

Roads Holding officially went bankrupt On June 11, 2014, the Sofia City Court declared the Roads Holding bankrupt. The holding’s activity was terminated following a prolonged financial agony, while a distraint was levied upon its property, it transpires from an announcement of the BSE-Sofia. The first meeting of the holding’s creditors will take place on July 16, 2014. The insolvency was declared antedate – as of September 30, 2014. The holding, connected to businessman Vasil Bozhkov, announced it had filed for insolvency in end-2013. According to its management this will best protect the interests of its shareholders and creditors. This is yet another company to launch such a procedure following Moststroy and its subsidiaries. Roads Holding has had financial difficulties for years. A report on its activity by end-September 2013 shows its accounts at First Investment Bank (Fibank) and UniCredit Bulbank were distrained by request of United Bulgarian Bank (UBB) up to BGN 7.6 million. Roads Holding also has a debt to Swiss bank UBS.
Source: Sega (18.06.2014)

Bulgaria’s coal producer Mini Maritsa Iztok launches tender for BGN 13 mln Bulgarian coal producer Mini Maritsa Iztok has opened a BGN 13-million tender to find a contractor for heavy equipment repairs over the next three years. The company is currently facing bankruptcy procedures requested by its largest creditor Fibank. Mini Maritsa Iztok is also seeking to borrow BGN 50.16 million from some local lender in order to carry out its investment programs. The company is ready to pay over BGN 13 million to the bank for a 10-year loan with a 2-year grace period. Meanwhile, TPP Maritsa Iztok 2 has negotiated a BGN 15-million overdraft from United Bulgarian Bank (UBB) to cover short-term cash needs as its money remains blocked at Corporate Commercial Bank.
Source: Trud (13.08.2014)

Loans under JEREMIE in Bulgaria total EUR 570 million The overall volume of loans granted under the two financial schemes of EU initiative JEREMIE (guaranty and low-interest) stood at EUR 568 million in late July 2014, according to data published by the local office of the European Investment Fund (EIF). The money was used to fund the projects of 6,800 companies. The guaranty scheme under JEREMIE, launched October 2012, has been fully tapped. It offered a guaranty pool of EUR 60.2 million to partnering banks in Bulgaria (UniCredit Bulbank, Raiffeisenbank, UBB, Cibank and ProCredit Bank), which allowed the lenders to grant loans at considerably lower warranty requirements. Over 2/3rd of the JEREMIE’s low-interest rate scheme, started in the first quarter of 2013, have been absorbed so far. The average interest of these loans was 3.9% in late July 2014 against a market average of 8.1%. Both schemes extend investment and turnover capital loans to SMEs operating in all business sectors. They cannot use the money for refinancing of existing loans or repayment of debts to suppliers.
Source: Capital (25.08.2014)

Deloitte: Greek banks are about to leave Bulgaria According to a recent analysis by Deloitte, a couple of Greek banks are expected to sell their subsidiaries in Romania and Bulgaria so as to focus on their core operations in Greece. In Bulgaria there are four banks with Greek owners. These are Alpha Bank, Piraeus Bank, UBB and Postbank (Eurobank Bulgaria). Closing the CCB will affect the sector, but at the same time, local banks are expected their lending activities, Deloitte forecasts. The consultants expect a credit growth of 4% in 2015 and 5% in 2016. The reason for this will be the growth of the Bulgarian economy, the improved financial condition of companies and declining unemployment, the reports says. Although the trouble with the Corporate Commercial Bank is expected to cast a shadow on the overall performance of the Bulgarian banking sector in 2014, the country's growing economy and decreasing unemployment will allow local lenders to expand their loan portfolios, the report titled "The Banking Sector in Central Europe - Performance Overview," says. The study is analyzing the business and outlook the Top 10 banks in each of the regions eight countries – the Czech Republic, Croatia, Poland, Slovakia, Bulgaria, Hungary, Romania and Slovenia.
Source: Standart (03.10.2014)

United Bulgarian Bank gets $10 mln IFC credit line to back SMEs The International Finance Corporation (IFC), a member of the World Bank Group, said it has extended a USD 10 million credit line to United Bulgarian Bank (UBB) to increase its lending to companies in Bulgaria, particularly small and medium enterprises (SMEs) involved in international trade. The credit line, part of IFC’s global trade finance programme, will help UBB grow its trade business as it seeks to attract new clients in export-generating industries, the IFC said in a press release. “The growth of export industries will be critical for Bulgaria to rebound fully from the euro zone crisis," Ed Strawderman, IFC's regional head of industry in Europe, Central, Asia Middle East and North Africa, said. "IFC’s partnership with United Bulgarian Bank demonstrates our support for the country’s economic development by enabling more small and medium enterprises to reach new markets through international trade.”
Source: Capital (21.10.2014)