Freeze on Bulgaria's Holding Roads Bank Accounts DeniedFinance | October 12, 2010, Tuesday // 11:37| views
Bulgarian billionaire Vassil Bozhkov (pictured) has repeatedly said that the collapse of Moststroy AD will in no way impact the performance of Holding Roads. Photo by BGNES
The bank accounts of Holding Roads, controlled by Bulgarian billionaire Vassil Bozhkov, have not been frozen, representatives of the United Bulgarian Bank have announced, denying earlier reports.
The holding has shed 70.92% of its market value over the last week.
Meanwhile 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.
According to the analysis the holding companies with bigger and more complicated structure will be closely monitored by investors and their shares will most probably lag behind the developments of the market in the mid-term.
Reports of Holding Roads frozen bank accounts surfaced days after Moststroy AD, a construction company believed to be controlled by billionaire Vassil Bozhkov, filed for bankruptcy after all its bank accounts were frozen because of unpaid debts.
A loan borrowed from the United Bulgarian Bank, a unit of the National Bank of Greece SA, was due on May 31, but the company said it has no money. Its construction machines and other equipment have been seized by Interlease, the company that leased them.
According to analysts the file for insolvency of Moststroy AD is very bad news for the Bulgarian capital market, but comes as no surprise. The precedent is feared to further dent the trust of the investors, particularly those from abroad, and make it more difficult to get credits from banks.
Under local legislation a company, which has declared insolvency, can restructure and draw up a rehabilitation plan.
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