Enforcement procedure on a hotel


Since March 2016 Ilieva, Voutcheva and Co Law Firm represents 8 successors, who co – own a land plot and a hotel in the very centre of the capital of Bulgaria. They concluded several agreements for transfer of property and establishment of right of construction against obligation for construction of a building and reconstruction of existing building, as well as agreement for lease of the property to the company which undertook to construct the building. The company reconstructed the building and now it functions as a hotel. The company – lessee did not complete its obligation to construct the other building and it stopped paying the rent due to the 8 co – owners. We reviewed the status of the real estate, as well as all encumbrances and all options for action of the owners. We sent notary invitation for voluntary fulfilment of the obligations of company, which also rented the property. Then we initiated a court procedure for issuance of writ of execution for the amounts due. We initiated enforcement procedure against the lessee and imposed injunction over the real estates owned by it, as well as distraint of the receivables of the lessee from company managing the hotel. Other creditors of the construction company including a bank with a mortgage over a half of the land plot and the hotel, as well as creditors with injunction over the real estate, also undertook steps towards the company to collect their receivables. Up to now there were 2 public sales of the real estates in which we represent the 8 co-owners.

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