BALKANCAR'S TRUSTEE IN BANKRUPTCY ENTERS THE BATTLE FOR THE HOLDING
The scandal regarding the bankruptcy of Balkancar Holding and the increase of its subsidiaries' capital is entering a new phase. The temporary trustee in bankruptcy of the enterprise Boyana Karaivanova announced for the BANKER weekly she would send letters to the heads of the 11 subsidiaries within Balkancar's structure. She will explain in the letters her stance that it is not pertinent to hold general meetings in order to vote issuance of new shares by the State, because the property rights of the holding's creditors would be violated. However, Ms. Karaivanova cannot decide if such meetings should be held or not. Therefore, her letters will be recommendatory and the heads of the subsidiaries are not very likely to comply with them.The capital of the 11 companies will be raised by BGN4.2MN. The State will also take part in the capital increase, the Deputy Minister of Economy Kaloyan Ninov announced on Wednesday (March 20). Thus, the State's share will reach about 70 per cent, up from its current 40 per cent. The money for the purchase of shares were approved by the Government on Thursday (March 21), but most of it will go back to the budget because the enterprises within Balkancar's structure have unsettled payments to the State. At the expense of the increased state-owned shares in the 11 enterprises the number of the holding's stocks in them will go down from 51-60% to 20-30% of the capital.Thus, even if Balkancar is decalred insolevnt, the trustees in bankruptcy will be selling minority packages only, and the creditors will get token receipts. The interests of Emil Kyulev's ROSEXIMBANK, whose receivables from Balkancar exceed BGN100MN (as a result of its purchase of BALKANBANK), will be most injured by such an operation. Mr. Kyulev's credit institution is hardly likely to receive more than 5% of that money. The State, however, will benefit because the proceeds from the sale of the companies, which were so far Balkancar's subsidiaries, will go directly to the budget.