Bulgaria's Holding Roads Files for Insolvency
Business | November 28, 2013, Thursday // 16:07| views
A road construction company, believed to be controlled by billionaire Vassil Bozhkov, announced it has filed for insolvency.
Holding Roads, the leading company in the tie-in, which won the tender for the construction of the longest section in Trakiya highway, linking the city of Yambol and the town of Karnobat, made the statement exactly two years after a spate of reports about its poor financial state flooded local media.
The company posted a loss of BGN 6.12 M at the end of September 2011 and said its debts to banks and non-banking financial institutions increase.
In the middle of September 2011 the United Bulgarian Bank, a unit of the National Bank of Greece SA, froze the bank accounts of the construction company.
"Accounts, receivables and bank tapes of Holding Roads at First Investment Bank and Bulbank, worth BGN 7.5 M have been distrained for the benefit of United Bulgarian Bank," the company announced in a statement, circulated to the media.
A loan borrowed from the United Bulgarian Bank was due, but not paid, according to the bank, a claim that the company vehemently denies.
Earlier that year an Elana trading analysts' review of indebted companies according to the main indices of the stock market SOFIX and BG40 showed that Evrohold Bulgaria, Petrol, Holding Roads and Kaolin are the companies with higher levels of debt as compared to the resources available.
Reports of Holding Roads frozen bank accounts surfaced half a year after Moststroy AD, another construction company believed to be controlled by Vassil Bozhkov, filed for bankruptcy after all its bank accounts were frozen because of unpaid debts.
Bulgarian billionaire Vassil Bozhkov had repeatedly said that the collapse of Moststroy AD will in no way impact the performance of Holding Roads.
Tags: Holding, Nove Holding, insolvency, Interlease, United Bulgarian Bank, Vassil Bozhkov, Trakiya Highway, lot 4, Patishta, Moststroy, BSE, roads
Bulgarian Traffic Police: Be Careful on the Road, there is Nowhere to Rush these Days!
Bulgaria is Launching Highway "Europa" but without the Last Layer of Asphalt
Bulgarian PM expects from the Ministry of the Interior Serious Control of the Roads
Bulgaria's Caretaker PM urged the Police: Stop the War on the Roads!
After Heavy Rains: Petrohan Pass Closed, Danger of Collapse of the Road Smolyan – Devin
Strengthened Control of the Roads in Bulgaria