In accordance with the Banks Insolvency Act, insolvency proceedings are opened for a bank upon the withdrawal of its banking license by the Bulgarian National Bank (“the BNB”). The petition for the opening of insolvency proceedings is filed to the competent court, together with an authenticated copy of the license withdrawal act. On 10 November 2014, a commercial case was opened with the Sofia City Court, at the BNB petition, on the opening of insolvency proceedings for the Corporate Commercial Bank AD (“the CCB”).
The case was suspended on 24 November 2014. The court held that the required suspension preconditions were available as follows: Decision No. 138 of 6 November 2014 of the central bank on the withdrawal of the CCB license had not entered into force because of its appeal in court. The Supreme Administrative Court (“the SAC”) had received 23 appeals against the BNB decision to withdraw the CCB license. The insolvency proceedings were stayed pending the resolution of the dispute at the SAC with an enforceable judgment. The suspension ruling is subject to appeal within a week as from 24 November 2014.