SOFIA (Bulgaria), March 30 (SeeNews) – Bulgaria's revenue agency has issued an injunction on transactions with the assets held by controversial local businessman Tsvetan Vasilev in six companies, including telco BTC, which are the subject of a recent deal, local media reported.
Last week LIC33, which describes itself as a group of companies bringing together European Union investors, said it has acquired for 1 euro Vasilev's stakes in BTC, ammunition maker Dunarit, aircraft repair company Avionams, TV services providers NURTS and First Digital and audience research company Garb against a commitment to repay the companies' debts, estimated at 900 million euro ($985.3 million). The deal involved 43% of BTC, 91% of Dunarit and as much of Avionams, and 100% of NURTS, First Digital and Garb.
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Vasilev, the majority owner of bankrupt Corporate Commercial Bank (Corpbank), has been charged with embezzlement and is awaiting a Serbian court ruling on Bulgaria's request for his extradition from Belgrade.
Also last week the Bulgarian competition regulator said it has not been notified about the deal.
Following the National Revenues Agency's decision, no transactions can be carried out with Vasilev's stakes in the the six companies but the companies can continue to operate as usual, the Bulgarian National Television reported over the weekend.
Officials of the agency could not be reached for comment.
On Tuesday, LIC33 chairman Pierre Louvrier told a news conference that he is the sole shareholder in the group and that his team has invested their own money in the deal. LIC33 has opened talks with creditors and plans to restructure and refinance the companies once they have been stabilised, Louvrier also said, adding that the group will seek partnership with international banks.
Later in the day, the Bulgarian government issued a statement, asking LIC33 to come up with official information about the source of financing of the deal.
“The Bulgarian Government is closely monitoring all major acquisitions of assets, which are thought to be linked to Corpbank and the accused Tsvetan Vasilev,” the statement read. “We insist on this in order to guarantee that investments in a European Union member state are realized only with funds acquired with the proceeds of legitimate business.”
In June, Bulgaria's central bank placed Corpbank, the country's fourth largest lender at the time, under special supervision over risk of insolvency and appointed conservators at the bank. In November, the central bank delicensed Corpbank and said it would seek the bank's insolvency after it was found to have a negative own capital. In December the Bulgarian Deposit Insurance Funde started repayments on guaranteed deposits of up to 100,000 euro at Corpbank.
(1 euro = 1.95583 Bulgarian levs)