BUSINESS BANK FOR SALE A SECOND TIME
After settling their relations with the State Receivables Agency, Ivan Panchev and Martin Hristozov, the curators of the failed Business Bank, are working on the second sale of the credit institution they manage. Yet, before announcing the second tender for the sale of Business Bank, they have to make a new evaluation of its assets.
The first evaluation was prepared in September 1999 by Ajour TDM, an auditor company, but the six month period of its validity has expired long ago.
The bankrupt bank of Ivan Kitov, who has left Bulgaria a long time ago, was then evaluated at BGL5,739,267. At the first tender, which took place on November 29, 1999, the only candidate was the Ministry of Finance, which offered BGL4.6MN for Business Bank's assets - 80% of the initial price. Still the ministry was not planning to pay with real money, but to deduct the amount from the bank's liabilities to the budget, amounting to BGL8MN respectively.
Sofia City Court did not approve this hollow operation and refused to accept the Ministry of Finance as Business Bank buyers. In the spring of 2000 the newly established State Receivables Agency requested a court decision for the transfer of Business Bank's assets to it. But this attempt of the state was also blocked by the court.
After Business Bank assets are evaluated anew, its curators will most probably offer its assets at a tender. The State Receivables Agency hopes that no investor ready to pay 80% of Business Bank's new evaluation will appear at the tender. Then the Agency, managed by Alexander Rakov, may request to receive the bank's assets, being the first and biggest creditor of the failed institution.