Insolvency Service
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BuyBulgaria limited in Hampshire closed down by High Court
A company who promoted the sale of yet to be built buy to let houses in Bulgaria has been closed down by the High Court following an investigation by the Companies Investigation Branch of the Insolvency Service.
BuyBulgaria Limited ("BuyBulgaria") acted as the main UK agent for a Bulgarian property development company, Bulgaria BTL OOD ("BTL").
BuyBulgaria, operating from its trading premises in Fareham, Hampshire, started to promote the sale of proposed property developments in late 2005 on behalf of BTL. BuyBulgaria developed a sub-agent network, including overseas property sales agents to make direct sales to clients across the UK and Ireland. Clients paid a £5,000 joining fee in order to gain access to the proposed development scheme, in order for BTL to incorporate a company on behalf of the client in Bulgaria, in accordance with requirements for non Bulgarian citizens to undertake property purchase transactions, and to allow the client to join an allocation queue for yet to be built properties offered for sale by Bulgaria BTL.
BTL used a BuyBulgaria bank account to collect in its £5,000 fees from UK and Irish clients. In the 16 month period November 2005 to March 2007 BuyBulgaria had recorded over 350 sales, and banked over £1.6 million. By March 2007 no properties had been built for any known UK and Irish clients who had agreed to purchase homes in Bulgaria. BuyBulgaria acted as banker for BTL transferring money to a BTL bank account in Bulgaria.
NOTES TO EDITORS
1. The registered office of Blenheim is at
21 Gudge Heath Lane, Fareham, Hampshire, PO15 5AB.
2. The petition to wind up the company in the public interest was presented on 9 July 2007 under the provisions of Section 124A of the Insolvency Act 1986 following an investigation conducted under Section 447 and 453A of the Companies Act 1985 by Companies Investigation Branch of the Insolvency Service. The petition was heard on 10 October 2007, at which time the company was wound up.
3. The Insolvency Service carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise and Regulatory Reform through Companies Investigation Branch.
4. The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they become insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.
5. All public enquiries concerning the affairs of the company should be made: The Official Receiver, Public Interest Unit, 21 Bloomsbury Street, London, WC1B 3SS. Public Enquiries: 0207 637 1110
6. Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
