Notice of sale by an insolvency practitioner | Lawyer Mihail Tomov | Varna

Lawyer Mihail Tomov | Varna

Article 717a(1) of the Bulgarian Commerce Act sets out what a notice of sale must contain: particulars of the debtor, a description of the assets, the procedure and method of sale, the place and date of sale, the time on that day by which bids must be received, and the valuation of the assets to be sold. Under Article 717в(3), each bidder states the price in figures and words and submits the bid in a sealed envelope with the receipt for the deposit. Bids are submitted on the day of sale before the deadline under Article 717a(1) to the insolvency practitioner, who enters them in a register in the order received. Immediately after the deadline stated in the notice, the practitioner announces the bids in the presence of the bidders attending. A written record must identify the bidders and their bids (Article 717в(4)). A lawyer experienced in this field may also prepare a bid.

The notice must specify the deadline for receipt of bids. A bid submitted after that deadline is invalid. The Act does not itself specify a deadline for paying the deposit. Article 717в(5) exhaustively lists the grounds on which bids are invalid; these include neither missing the deadline under Article 717a(1) nor missing the deadline for payment of the deposit.

For this reason, courts often hold that payment of the participation deposit after the time set for payment does not invalidate the resulting award order.

This article is not a legal opinion or advice on a particular situation or person. The author makes no claim to cover corporate insolvency exhaustively. For legal assistance in a similar case, consult a commercial lawyer.