The effect of the opening of the stabilisation procedure is that a merchant is restricted in its operations either partially (i.e. they could be carried under the supervision of the trusted party) or fully, when the merchant is divested of its rights to manage and dispose of its assets. The opening of the proceedings also imposes a ban over the merchant to repay debts that occurred prior to the date of the application and have not been paid on the maturity date, except for public payments .
The stabilization procedure under Bulgarian law foresees the adoption of court approved stabilisation plan.
The stabilisation plan should provide for at least 50% repayment of liabilities for all creditors and may not provide for extension of repayment terms by more than three years. The plan may propose selling of separate assets, of the going concern, parts of it, or debt to equity conversions.