DEPUTIES HAVE REJECTED YANKOV'S LEV
The assets of bankrupt enterprises will not be sold for BGN1. This decision was voted by the MPs from the Parliamentary Commission on Legal Issues when they discussed on second reading the amendments to the Commercial Code. The revolutionary idea of the Ministry of Economy was aimed at quick cashing of property and foresaw in case of a second tender the initial bidding price to be BGN1. I'm well-aware of Deputy Minister Nikola Yankov's concept about BGN1, but any such tender will be inaccessible as the whole area will be surrounded by criminals, opposed Konstantin Penchev, MP from NMSII's parliamentary group. Penchev and the Commission's Chairman Anelia Mingova offered that the price of the assets should be reduced to 50% of their former evaluation at the second tender. This offer could have been backed without problem, had there not been mentioned the word evaluation. Deputy Minister Nikola Yankov insisted that the price at the second tender should not be tied to the evaluation, but to the initial price of the assets, which is set by creditors. According to him, evaluation is the most widely spread way of manipulation and experts are usually bribed to artificially boost values. Mr. Yankov claimed that the creditors' general meeting might directly settle the initial bidding price of the assets without any evaluation. Any evaluation should be only informative and the bidding could start from a much lower price. The Cabinet had been drafting the project for a year, but the PMs got confused. They, together with the experts of the Commission, stated that the project lacks consistence on the point that evaluation would no longer be obligatory. They even quoted concrete provisions - some of which had already been passed, in which the price was compared with the evaluation. Mr. Yankov, however, was not confused at all and expained the inaccuracies with technical mistakes. Practically, the drop-out of the evaluation would have enabled creditors to settle a BGN1 price still at a first tender. Let's not make experiments with the law, said Mr. Penchev and added that the debtor's property did not belong to his creditors and they could not give it away. The MP reminded that when passing the Tax Procedure Code it was accepted that in case the State Receivables Collection Agency failed to sell the property at 50% of its evaluation, then it was obliged to return it to its owner. Otherwise the deal proves much unprofitable. But Mr. Yankov would not give up that easily and kept on claiming that the debtor's interest was defended by the announcement of the sale. In future the tender announcements will be piblished in a special appendix to the Official Gazette. Without any debates the MPs backed Ms. Mingova and Mr. Penchev's offer that perishable goods could be sold with the court's permission even before the creditors had voted the start of the cashing.