As at 21 January 2018

By Angel Ganev 

Partner at Djingov, Gouginski, Kyutchukov & Velichkov 

Sofia, Bulgaria


Simeon Simeonov

Senior Associate at Djingov, Gouginski, Kyutchukov & Velichkov

Sofia, Bulgaria



Elements of the Directive already included into the national legislation

„Производство по стабилизация на търговец“
(“trader stabilization proceedings ”)

Article 5 of the LC – the Law on Commerce (LC) provides that, upon finding that the merchant’s actions may put the interests of its creditors at risk, the court may restrict or suspend the merchant’s right to manage and dispose of its property, as appropriate, and grant this right to the appointed  trustee.
Article 6 of the LC – LC provides that after initiation of the restructuring proceedings, no enforcement proceedings against the merchant and no enforcement action under the Registered Pledges Act against any property of the merchant shall be admissible. Enforcement proceedings that have been already commenced, are stayed. However, security measures may be imposed under the stayed enforcement proceedings against the merchant.
Article 7, para 7 of the LC – Bulgarian law does not require debtors to file for insolvency procedures if the stay period merely expires without an agreement on a restructuring plan being reached, unless the other conditions for filing laid down by national law are fulfilled. The only consequence is that the stabilization proceedings are terminated on this ground.
Article 8 of the LC – LC provides for all of the prerequisites, set out in the article as minimum mandatory information to be included in the restructuring/stabilization plan.
Article 910, 12 and 14 of the LC are implemented.
Article 15 of the LC – LC provides for the possibility that the court ruling confirming the plan, is appealed before the Supreme Court of Cassation, whose decision is final.