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Asen Vasilev‘s Associate Faces Financial Setback as Bulgarian Court Enforces $3.5M Debt
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Sofia,Bulgaria – In a important legal development,the Sofia City Court has ruled in favor of Sebastian Bretshnayder,the creditor of “CTV consulting,” a company previously associated with Bulgarian politician Asen Vasilev. The court’s decision enforces a $3,530,400 arbitration award issued by the International Center for Dispute Resolution in the US Arbitration Association, plus accruing daily interest [1].
Court upholds International arbitration Ruling
The ruling compels “CTV Consulting” to pay Bretshnayder the ample sum for breaches of a revolving loan agreement. Beyond the principal amount, the court has also mandated a daily interest of $2,824.32, retroactive to july 1, 2024, alongside $28,805 in fees and expenses, and $38,290 for legal depiction.
The proceedings were initiated under Bulgaria’s Law on International Commercial Arbitration, with Bretshnayder seeking the court’s endorsement to execute the US arbitration decision and obtain a writ of execution for the awarded funds.
Did You Know? International arbitration is a common method for resolving commercial disputes across borders, offering a neutral forum and enforceable decisions.
Legal Battles and Bankruptcy Proceedings
The Sofia City Court’s judges affirmed that the arbitration decision aligned with the agreement between “CTV Consulting” and Bretshnayder, and its enforcement would not contravene Bulgarian law. The court emphasized that “CTV Consulting” had the chance to present its case during arbitration, ensuring fairness and due process.
Furthermore, the court ordered “Stat Consulting” to cover additional legal costs amounting to BGN 41,849.34. Though, this decision is not final and remains subject to appeal within a two-week timeframe to the Court of Cassation (CAC).
Adding complexity to the situation, “CTV consulting” is currently undergoing bankruptcy proceedings. Asen Vasilev’s prior involvement came under scrutiny when the court initially determined the company became insolvent on December 31, 2020, while he was the sole owner and manager. Vasilev transferred his ownership to Mario sotirov’s company on May 7, 2021, before assuming the role of Finance Minister.
Pro Tip: Bankruptcy proceedings can significantly impact the recovery of debts,often leading to protracted legal battles and potential losses for creditors.
Loan origins and Unfulfilled Obligations
The bankruptcy case was triggered by Bretshnayder’s claim against “CTV Consulting” for $3,81,600, representing unpaid principal and interest on a loan. The original loan agreement, dated February 25, 2019, involved $1 million from StV K. LTD, registered in the British Virgin Islands. An addendum on November 27, 2020, provided an additional $477,025, with “STV CONSERTING” Ltd. in Bulgaria, then headed by Asen vasilev, as a joint debtor.
Under the agreement, “STV CONSERTING” committed to securing the loan with a second mortgage on its property. However, this mortgage was never established, and the property was afterward sold without repaying Bretshnayder. The loan’s maturity date was January 1, 2023, prior to the property’s sale.
First Investment Bank later joined the bankruptcy proceedings, having extended a loan to the company on August 27, 2021, to support its turnover.
The most recent activity in the company’s account occurred on June 6,2025,with an attachment imposed in favor of First Investment Bank for BGN 1,362,691.65, based on a writ of execution.
Timeline of Key Events
| Date | Event |
|---|---|
| February 25, 2019 | Original loan agreement for $1 million. |
| November 27, 2020 | Additional loan agreement for $477,025; “STV CONSERTING” becomes a joint debtor. |
| December 31, 2020 | Initial court determination of “CTV Consulting” insolvency. |
| May 7, 2021 | Asen Vasilev transfers ownership of “CTV Consulting”. |
| August 27, 2021 | First Investment Bank provides a loan to “CTV Consulting”. |
| January 1, 2023 | Loan maturity date. |
| July 2024 | International Center for Dispute Resolution issues arbitration award. |
| June 6, 2025 | attachment imposed on company shares in favor of First Investment Bank. |
What are the potential long-term implications of this ruling for Asen Vasilev and his political career?
How might this case affect investor confidence in Bulgarian companies?
Understanding International Arbitration
International commercial arbitration is a mechanism for resolving disputes arising from cross-border commercial transactions. it offers several advantages over traditional litigation, including neutrality, enforceability, and confidentiality. The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards is a key international treaty that facilitates the enforcement of arbitration agreements and awards in signatory countries, including Bulgaria [2].
The Role of Bankruptcy in Debt Recovery
Bankruptcy proceedings are designed to provide a structured framework for dealing with insolvent companies and their creditors. The process typically involves assessing the company’s assets and liabilities, developing a repayment plan, and perhaps liquidating assets to satisfy creditors’ claims. However, bankruptcy can be a complex and lengthy process, and creditors may not recover the full amount of their debts [3].
Frequently Asked Questions
Q: What is a writ of execution?
A: A writ of execution is a court order that authorizes law enforcement officials to seize a debtor’s assets to satisfy a judgment.
Q: What is insolvency?
A: Insolvency is the state of being unable to pay one’s debts as they fall due.
Q: What is a contractual mortgage?
A: A contractual mortgage is a voluntary agreement where a borrower pledges real estate as security for a loan.
Disclaimer: This article provides general information and should not be construed as legal or financial advice. Consult with a qualified professional for specific guidance.
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