Oman's SGRF offers to discuss restructuring of Bulgaria's Corpbank

By bne IntelliNews September 11, 2014

Oman's State General Reserve Fund (SGRF), the second-biggest shareholder in Corporate Commercial Bank (Corpbank) with a stake of about 30%, has proposed to discuss a restructuring of the troubled lender.

The Bulgarian National Bank (BNB) said it received on Sept 10 a letter from financial consultancy EPIC, which demands access to confidential information about Corpbank with the goal of making a restructuring plan. EPIC represents SGRF, "other unnamed shareholders" and potential investors, the central bank said. In addition to SGRF, stakes in Corpbank own controversial businessman Tsvetan Vassilev (50.6%) and sanctions-hit Russian VTB bank (9.1%).

The letter offers the signing of a non-disclosure agreement between EPIC, the government and the central bank and also states readiness to discuss a restructuring of Corpbank that complies with EU rules on state aid, BNB said.

In an earlier letter, the SGRF told BNB it will consider participating in the restructuring of the bank together with other investors if the Bulgarian government also pledges to provide support.

Corpbank, Bulgaria's fourth largest lender, suffered a run on deposits in June and is now under central bank receivership. Independent auditors are currently going through the bank's balance sheet to assess the quality of its assets and should announce the results of their audit by October 20.

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