VARNA SHIPYARD'S INSOLVENCY LITIGATED
On February 7 Rossen Teodosiev, Chairman of the committee of creditors of Varna Shipyard AD, appealed against the ruling of the Varna Regional Court, adjudicating the company insolvent. However, only the part for stopping the operation of the enterprise was appealed. Mr. Teodosiev told the BANKER weekly that the Court extended a ruling on something it had not been approached for. The ruling of the Varna Regional Court, published in an extraordinary issue of the Official gazette on January 31, points out that it is in compliance with the decisions of the creditors' meeting. But the creditor voted against stopping ship-repairing activities.I am ready to withdraw the appeal and avoid a lawsuit if somebody undertakes a commitment and assures me that the shipyard's operation shall not be stopped, Mr. Teodosiev added. Dimitar Smilenov, trustee in bankruptcy of the Varna Shipyard, believes there are no obstacles for the ship-repairing to continue. He explained that the tender procedure for the enterprise's sale is being prepared now, specifying that the date of holding the tender would be known next week.The appeal, submitted by Rossen Teodosiev, will not impede the bidding, because it is a partial one. No other appeals against the counrt's ruling were filed within the legally set term (by February 7). However, there might be other appeals as well. They may arrive later by mail, as was the case when the Varna Shipyard was declared bankrupt for the first time, some experts recalled.Currently, three vessels are being repaired at the shipyard and the expected proceeds are BGN200,000. Obviously, some of our competitors do not want us to work, Mr. Teodosiev was adamant. The Varna-based companies Odessos and Dolphin-1 are also in the ship-repairing industry.It is not yet known when the negotiations with the Bank Consolidation Company and Central Cooperative Bank (the only creditors that have collaterals on the Varna Shipyard's assests) will be completed. In order to set a date for the tender, they should give their approval for putting up for sale (together with the other property of the enterprise) the assets, collateralized as special pledges. Otherwise, a sepaarte tender for these assets should be invited.