UBB and DSK Bank in unequal court battle with offshore company – sham creditor of Bross HoldingUBB and DSK Bank in unequal court battle with offshore company – sham creditor of Bross Holding

Sofia. The Silistra District Court ruled on April 3, 2015, that United Bulgarian Bank (UBB) and DSK Bank should pay offshore company (and sham creditor of Bross Holding) DC & Chem Co BGN 1,305,005.24 each for the remuneration of the legal adviser appointed by the offshore company, the Capital weekly reports. The two banks appealed against the ruling at the Varna Appellate Court.

In spite of the two banks’ numerous attempts to defend their rights as creditors of Bross Holding, the real danger exists for them not only not to collect their receivables, but be forced to make colossal expenses related to its insolvency. It is all the result of a series of vicious schemes that apart from the insolvency proceedings involve a second pledge of Bross Holding and two sales in compliance with the Registered Pledges Act, following which the assets of the debtor dwindled and its well-operating chemical factories were sold against BGN 100.