Insolvency & Liquidation


The worldwide finacial crisis has left deep marks in Bulgaria´s economy too. Many companies have become insolvent. Due to undercapitalization (and thin capitalisation rules) and lack of diversification, most of them could not be restructured. Although Bulgarian insolvency rules provide for financial reorganisation and redevelopement in a jount plan of the creditors, often no experienced and skilled reveivers in insolvency are available.

That means for creditors of Bulgarian companies, to look into the future and secure their claims with respect to liquidity bottlenecks and insolvency. They should also look for typical signs such as 

  • change of bank accounts
  • deferred payments
  • delayed and deferred investments
  • sale of company assets
  • repeated change of directors

COELER LEGAL offers a complete check of client´s relations with Bulgarian partners including liquidity, risks etc. as well as how to secure their claims. We consider all security instruments provided for by Bulgarian law, such as liens, bonds, guarantees, conditional sales, retention of title, assignments of claims etc. Our aim is to avoid losses by precautionary advice.

If however insolvency cannot be avoided, we offer a full service such as:

  • filing of claims to the insolvency court
  • negotiations with the receiver
  • sorting out of properties
  • purchase of the business or assets from the receiver in insolvency
  • representation in the assembly of creditors
  • general advice in insolvency law


If a business is no longer profitable, or the shareholders do not see any sense in continuing the company, they will close it. In  law, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company redistributed. Liquidation can also be referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation. The process of liquidation also arises when a court, or customs authorities determines the final computation or ascertainment of the duties or drawback accruing on an entry. <//span>Liquidation may either be compulsory (sometimes referred to as a creditors' liquidation) or voluntary (sometimes referred to as a shareholders' liquidation, although some voluntary liquidations are controlled by the creditors.

Bulgarian commercial law provides only for a few provisions and leaves it to the shareholders and the liquidator to wind up the business. Once the decision to liquidate the company has been filed to the Registrar of Companies, the managing directors have no more rights to represent the company but the liquidator has taken their position.

COELER Legal has gained extensive experience in winding-up bulgarian companies in the last years. We provide for a liquidator who will analyse the company´s affairs books together with accountants. We prepare all financial statements and documents required by Bulgarian commercial and tax law until final dissolution of the company.


Shana Kaloyanova

Dr. Frank Schmitz