Grain Sector Shock: Major Bulgarian Producer Collapses Under Massive Debt

Farm Sense AD, a long-standing agribusiness company based in the Dobrudja region, has initiated bankruptcy proceedings in the Sofia City Court. The request was filed on November 20, 2025, marking a difficult moment for a firm with more than three decades in the grain sector. Over the years the company has developed its own depots, silos and transport fleet, trading not only in grain and oilseeds but also in biomass for domestic and international markets.

Majority owner Plamen Borisov attributes the move to what he describes as an unfavourable and rapidly shifting grain market for the 2025 harvest. According to him, this year’s market conditions have severely affected producers storing their output in the company’s facilities, ultimately leaving Farm Sense unable to execute agreed sales and export contracts. In the court filing, Borisov notes that the company failed to fulfil several commitments, including a deal with a Swiss buyer for 20,580 tons of wheat with a deadline of November 15, 2025. The Swiss partner has already issued an invoice of nearly 800,000 euros, which Farm Sense cannot meet.

Beyond the weak market, the company faces substantial financial pressure. Its 2024 report shows liabilities to financial institutions of 128.943 million leva, of which 125.454 million leva are due within a year. Payables to suppliers amount to 7.781 million leva, obligations to group companies reach 5.137 million leva, and other debts add another 12.649 million leva. In total, outstanding liabilities stand at 154.51 million leva, with more than 138 million leva accruing only during the last year. Interest payments in 2024 alone exceeded 12.6 million leva. Creditors include four Bulgarian banks, as well as one Swiss and one Dutch financial institution, in addition to multiple suppliers.

One positive element highlighted in the documents is that Farm Sense has no outstanding obligations to state institutions or to its employees. On November 24, Judge Stoyu Zgurov authorised a procedural step allowing any interested party to provide proof of costs amounting to 8,000 leva, warning that failure to do so may halt the proceedings.

The company’s move underscores the difficult environment facing Bulgaria’s agricultural sector after two consecutive crisis years. The situation affects both local producers relying on Farm Sense’s storage capacity and international partners involved in grain trade.