The developing situation worldwide and in Bulgaria calls for additional efforts and remedies to minimize the consequences of the danger to our health and lives. Protecting the business and minimizing the negative impact upon it is also of high importance for the normal continuation of life. The obscurity, which we all face, may lead to fear and panic, which in turn can become the reason for taking wrong decisions with long-lasting negatives. For others, these events will become ground for new opportunities and achievements.

The team of Popov, Arnaudov & Partners does not offer universal decisions, because every situation differs and requires individual steps and strategy. With a view to the above we have adopted specific measures by creating a team of experts in different spheres, to track the dynamic situation and summarize the constantly changing legal framework and actions of the State. We will be at your disposal if you face difficulties and uncertainties related to the decisions you would take or have already taken to protect your business from the negative consequences of COVID-19.

In the last two weeks our team prepared an information package that is being updated with each change of the regulations. We hope it might be of use in the process of decision-making in this difficult situation:

Labor law relations: what changed in the legal framework of labor law relations upon the adoption of the Law on the Measures and Actions during the state of emergency, including: home office, part time work schedule implementation, suspension of work activity of the enterprise or an enterprise unit, compulsory paid/unpaid leave.

Employment protection: the employers’ opportunities to make use of compensations, provided by the Bulgarian State, for the preservation of employment numbers during the state of emergency.

Private law relations: the consequences of the state of emergency implementation on commercial relations, including: eventual grounds for claiming force majeure, economic intolerance and others.

Tax obligations: the introduced relief options in the sphere of taxes for the people and the business.

Pricing and consumer protection: the specific requirements and sanctions, related to price formation under the conditions of the state of emergency and the respective rights and obligations of consumers.

Public procurement: the changes to the public procurement procedures under the conditions of the state of emergency.

The state of emergency and the banking sector: when is a loan considered non-performing in a state of emergency; the fulfillment of certain regulatory conditions by the banks and financial institutions.

In line with the above, the main legal needs we consider vital in the current situation which your business might face and where you can count on our high professionalism, honest attitude and human approach, are the following:

• Employment: personnel and payroll cuts, government support, etc.;
• Changing regulatory conditions and prohibitions for certain business activities;
• Credit restructuring, financial institution relations/ negotiations;
• Renegotiation, cancellation or postponement of signed contracts;
• Recovery, restructuring and optimization of uncollected receivables;
• Optimization of tax and insurance obligations;
• Restructuring of assets and their opportunities to generate income;
• Force majeure analysis of all signed contracts, including rent, lease and copyright;
• Corporate/ business restructuring;
• Impact on public procurement participation and execution;
• Requirements for pricing and advertising policies; rules for online trading;
• Out-of-court dispute settlings;
• Legal representation in court disputes.

In regard to legal representation, the following important aspects should be considered: within the time duration of the state of emergency, claims may be filed, but in the majority of cases, no lawsuit forms and no development occurs. There are a number of notable exceptions to this rule:

• Precautionary claims and imposing of injunction;
• Evidence perpetuation claims;
• Enforcement proceedings against legal entities

In addition to the above listed topics, we are prepared to answer any other question or call for support on your side.

You can count on our support.

the team of Popov, Arnaudov & Partners