Bulgaria: bankruptcy proceedings against glass makers

Belopal, the bankrupt Beloslav-based glass maker, has debts of BGL 18.950 million, temporary receiver Georgi Budev announced at the first general meeting of creditors held on 16 July 2003. On 7 July 2…

Belopal, the bankrupt Beloslav-based glass maker, has debts of BGL 18.950 million, temporary receiver Georgi Budev announced at the first general meeting of creditors held on 16 July 2003. On 7 July 2003 the State Gazette announced the beginning of bankruptcy proceedings against Belopal and Sofia-based lawyer Elvira Toncheva was appointed permanent receiver to the company. The largest creditor is Bulgargas with receivables amounting to at least BGL 10.807 million, although Bulgargas representatives are claiming BGL 13 million. Amongst other debts, Belopal owes BGL 1.916 million for power supplies to the National Electric Company, BGL 2.872 million for staff contributions to the National Social Security Institute, and BGL 343,000 to SG Expressbank. Bankruptcy proceeding against another glassmaker, Razgrad-based Diamant, were also confirmed by the Varna Appeal Court. The company has debts of BGL 12.5 million for gas supplies from Bulgargas. The failures of Belopal and Diamant are being blamed on poor management, high natural gas and electricity prices, the waiver of customs duties on the import of household glassware from Turkey and competition from Greek companies.