Insolvency

These days, there is a fear among creditor banks and companies that the companies they are doing business with could appeal for a suspension of any declaration of bankruptcy. If this situation turns into an epidemic, then it may well be a nightmare for commerce and economy in general.  

Bulgaria's Finance Minister Vladislav Goranov has sent to Parliament the report of AlixPartners Services UK LLP report on tracking the assets of insolvent Corporate Commercial Bank (KTB).

The government spokeswoman Olga Gerovassili said to ANT1 TV channel that “Bad loans are the government’s main priority,” adding that this issue will be dealt with sensitivity and low and middle income classes will be protected and they “will not lose their homes”.

Bank Insolvency Act amendments aimed at allowing easier access of creditors to information related to the insolvency proceedings passed second reading in Parliament on Wednesday.

Under the newly adopted provisions, the list of creditors who have submitted claims against a bank undergoing insolvency proceedings will be published in the Business Register.

It is difficult to understand why there is so much jubilation in Cuba or among Turkey's romantic socialists over the Greek "oxi" (no) vote and the subsequent developments in Greece. Does Greece have an incredible amount of debt? It does. Should it pay it? It should. Can it compare the situation with the post-war situation and the conditions Germany and the World War II victors "agreed" upon?

Workers at Dita, a once famous detergent company in the northwestern town of Tuzla, are celebrating after the company's creditors decided not to liquidate the firm and sell its assets, but seek a strategic investor who would keep on all the current employees.

"We won," Dzevad Mehmedovic, head of the trade union of Dita workers, told BIRN on Wednesday.  

Noted French economist Thomas Picketty this week reiterated his proposal for a major European summit to deal with European debt issue, while stressing that such a venue should aim for a significant “haircut” of Europe’s total debt.

Moreover, Picketty sharply criticized Berlin’s handling of the Greek issue.

Storied American gunmaker Colt, which has roots stretching back centuries, plans to file for bankruptcy protection, The Wall Street Journal reported on June 14.

The company, which lost a large U.S. Army contract, is in need of the protection "amid business-execution issues and a heavy debt burden," the report said, citing unnamed people familiar with the plan.

By Thanos Tsiros

Just as cash flow in the Greek economy has all but dried up, a recent law is seen as erecting obstacles to new investment.

The contentious clause was voted into law in March as part of legislation that is ostensibly meant to help restart the economy, though experts are concerned that it may have the exact opposite effect.

Premier Victor Ponta said on Wednesday that steps to list another state-owned company will be taken depending on the completion of the required procedures, adding that in Hidroelectrica's case, a court solution is sought to sooner get the company out of insolvency and have it listed on a stock exchange.