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- Art 34.
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- (1)
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(Amended, Official Gazette issue No 51 of 1994 and issue No 122 of 1997) State-owned and municipal-owned enterprises, as well as detached parts thereof, may be privatized by:
- 1.
- a lease contract for 25 years with a buy-out clause;
- 2.
- a management contract with a clause on management buy-out or sale to third parties;
- 3.
- a conditional sale agreement;
- 4.
- a contract to sell on suspense or terminative conditions, such as continued use of the unit for the same purpose, employment protection, investment activity, attainment of designated results et al.
- (2)
- (Added, Official Gazette issue No 122 of 1997) The decision to privatize detached parts of state-owned and municipal-owned enterprises, in which the state or the municipality is not the sole owner of the capital, shall be taken only after the management of the respective enterprise.
- (3)
- (Added, Official Gazette issue No 51 of 1994; renumbered, issue No 122 of 1997) Any purchase contract pursuant to this Chapter shall be awarded by tender or by negotiated placement. (3) (Renumbered and amended, Official Gazette issue No 51 of 1994; renumbered, issue No 122 of 1997) The competent authority pursuant to Art 3 may dissolve the juristic person of any enterprise which is subject to any transaction under Para 1.
- Art 35.
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(Added, Official Gazette issue No 54 1994, amended, issue No 109 of 1995, issue No 89 of 1997 and issue No 39 of 1998)
- (1)
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Any state-owned or municipal-owned enterprise or any separate part thereof may be bought out without auction or tenders, at a price equal to the appraised value of the said enterprise or part, by any of the following:
- 1.
- employees of the privatizing enterprise or of a separate part thereof, or persons pursuant to Art 5, Para 2, provided that 20 per cent of said employees or persons wish to participate in the privatization, as well as by juristic persons instituted solely thereby;
- 2.
- a tenant or lessee by contract made after October 15, 1990 but prior to October 15th, 1993, provided said contract regardless of its term of validity, has not expired by the date of submission of the proposal for privatization.
- (2)
- (Repealed, Official Gazette issue No 109 of 1995, added issue No 89 of 1997; amended, issue No 39 of 1998) In case a court ruling to repeal an explicit or an inherent refusal for the initiating of a procedure for privatization pursuant to Para 1, Items 1 and 2, has come into effect, the authority pursuant to Art 3 is obliged, within a period of two months after the court ruling to initiate a privatization procedure, to perform the necessary pre-privatization preparatory activities and to offer the enterprise for sale to the eligible entities.
- Art 36.
- (Added, Official Gazette issue No 54 of 1994, amended, issue No 39 of 1998) The book value of the fixed assets by the time of filing of the proposal, of any unit pursuant to Art 35 may not exceed BGL 10,000,000 in the case of a manufacturing enterprise or a separate part thereof or BGL 5,000,000 in the case of a distributive-trade or service-performing enterprise or a separate part thereof.
- Art 37.
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(Added, Official Gazette issue No 54 of 1994)
- (1)
- Appraisal shall be made according to the procedure established by Art 16.
- (2)
- No improvements shall be appraised or included in the price, except where made or paid for by the lessor.
- Art 37 A.
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(Added, Official Gazette issue No 109 of 1995)
- (1)
- Any proposal pursuant to Art 35 shall be accepted for consideration by the competent authority pursuant to Art 3 provided that said proposal be submitted not later than June 30th, 1996.
- (2)
- Should more than one proposal pursuant to Art 35 be submitted for the same enterprise or separate part thereof, the proposals submitted by persons who have declared a wish to buy out the entire enterprise shall take precedence over the proposals submitted by persons who wish to purchase only a separate part of the enterprise.
- (3)
- Should more than one proposal pursuant to Art 35 be submitted for the same enterprise or separate part, an internal competition shall be held between the potential buyers on the strength of the documents submitted. The terms and procedure for the holding of the competition shall be established by the competent authority pursuant to Art 3.
- Art 38.
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(Added, Official Gazette issue No 54 of 1994, amended, issue No 109 of 1995)
- (1)
- The competent authority pursuant to Art 3 may refuse to grant any proposal for privatization submitted by any persons pursuant to Art 35 on grounds of non-conformity with the requirements of this Act or of the annual privatization program, or where the proposal concerns any enterprise or separate part included in a list adopted by the Council of Ministers. In said list, the enterprises and separate parts may likewise be stated in generalized terms (by branch, type of production, trade or service and other such). Said list shall be published in the Official Gazette and may be altered where necessary.
- (2)
- Any refusal or non-consideration within the time limits established by this Act by the competent authority pursuant to Art 35 shall be subject to appeal according to the standard procedure. Proceedings shall be exempt from stamp duty.
- Art 39.
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(Added, Official Gazette issue No 54 1994, amended, issue No 109 of 1995, issue No 45 of 1996)
- (1)
- Ownership shall be transferred within one month after receipt of written consent from the proposing party to purchase the unit at the fixed price.
- (2)
- Where real rights to immovable property are transferred, said property shall be mortgaged in favour of the seller until the full payment of the purchase price of the enterprise or the separate part.
- (3)
- (Added, Official Gazette, issue No 45 of 1996) The registration of the established mortgage shall be effected on the basis of a letter signed by the authorities pursuant to Art 3, Indent 1 to 4, and after the presentation of the sales contract. No state fees shall be collected for the conduct of these registration procedures.
- Art 40.
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(Added, Official Gazette issue No 54 of 1994)
- (1)
- Any persons pursuant to Art 35 shall have the right to pay the purchase price in installments subject to the following conditions: 1. in the case of any manufacturing or service-performing enterprise or separate part thereof: maximum collection period of six years, down pang year; the amount of the unpaid balance shall remain unadjusted for the duration of the grace period. The amount of the unpaid balance shall not be adjusted should the buyer pay said amount within twenty-four months after the date of signature of the contract.
- (2)
- (Added, Official Gazette issue No 109 of 1995) The annual installment for each calendar year shall be determined by distributing evenly the amount due for payment in installments over the collection period. The buyer shall be obligated to pay the annual installment in two portions during the year. The buyer may pay any installment in advance without restriction during the entire collection period, including the grace period.
- (3)
- (Renumbered, Official Gazette issue No 109 of 1995) Any persons pursuant to Art 5, Para 2 who participate in a purchase shall be given a discount equal to 20 per cent of the purchase price or to the sum total of the gross wages which said persons have drawn in the privatizing enterprise during the last twenty-four months, as calculated by the method indicated in Art 22, Para 4.
- Art
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41. (Added, Official Gazette issue No 54 of 1994)
- (1)
- Any tenant or lessee shall be limited to the purchase of a single enterprise or separate part according to the procedure established by Art 35.
- (2)
- No enterprise or separate part which has been bought out according to the procedure established by Art 35 may be resold within five years after payment of the purchase price thereof. No property included in any such enterprise or part may be pledged as security prior to the final payment thereof.
- (3)
- Eligibility for participation in the purchase of any enterprise or separate part according to the procedure established by Art 35 shall be limited to Bulgarian citizens residing in Bulgaria and to Bulgarian juristic persons wherein no foreign person holds an interest.
- Art
- 42. (Added, Official Gazette issue No 54 of 1994)
The procedure for submission of proposals for privatization and buy-out of enterprises and separate parts pursuant to Art 35 shall be established by the Council of Ministers.
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