Official Position of KYB Corporation Regarding the "Baba Alino" Case

We insist that facts must be reviewed based on documents, not political insinuations

KYB Corporation, currently facing increased public attention and public statements regarding its investment project in the “Baba Alino” area near Varna, states the following:

We will not resolve this case through media disputes. Our position and all relevant documents will be presented in accordance with the established legal procedure. Therefore, we insist that the matter be examined solely on the basis of facts, documents, administrative chronology, and permits issued by competent authorities, rather than through political insinuations, qualifications, or premature public judgments.

About the Company and Investment

KYB Corporation is an investor with a long-term presence, real investments, and a professional history not only in Bulgaria but also in several other countries. In Bulgaria, we operate as a member of the Chamber of Builders in Varna and hold a Class 1 license.

The investment in the Forest Club complex is part of our long-term commitment to Varna and the region. Within the framework of the project, significant funds have been invested, and jobs have been created for Bulgarian and Ukrainian citizens, including individuals who found protection and employment in Bulgaria following the outbreak of the war in Ukraine.

Regarding the Status of the Land and Forest Fund

With regard to the allegations that the land belonged to the forest fund and was subsequently converted for construction, we state: at the time of acquiring the properties, they already possessed an existing administrative and documentary history.

KYB Corporation found the territory with a plan from 1967 and a decision of the municipal authorities from 2015 as falling under the hypothesis of Paragraph 6 of the FA (Forest Act), a procedure that had been initiated even on a larger scale than the current one under the approved PUP-PRZ (Detailed Urban Plan - Regulation and Building Plan), which procedure stipulates that the designation of the forest may not be changed. The OUP (General Development Plan) of Varna was adopted in 2015 — also before KYB entered Bulgaria. It designates the territories as zones "Zhm2" (low-rise residential zone) and "OK" (public zone), and only some of them as "G" (forest zone). The OUP of the city of Varna was approved by the Minister of MRRB (Ministry of Regional Development and Public Works) after extensive public discussion. A PUP does not legalize structures but applies the already adopted OUP.

We insist that the full chronology be taken into account – on what grounds is it claimed that there are documents with false content, given that the documents were issued with this content by the Municipality; they are authentic. The Municipality collected hundreds of thousands of euros from us and all buyers for property tax and garbage fees, as well as local acquisition tax, and now claims that what was declared was based on a false document issued by the municipal administration itself. It even collects taxes for non-existent services – waste collection and removal. The notary deeds of ownership are public and registered with the Registry Agency (Sluzhba Vpisvaniia) - Varna back in 2023 and 2025, they are not apocryphal literature, and knowledge of them is presumed for all, furthermore, the Municipality itself issues all documents for transactions and deeds. Insinuations to this effect are groundless and absurd.

Regarding Site Measures and Security

We reject the insinuations of illegal logging on the part of the company. A clear distinction must be made between the actions of the investor and the actions of third parties. The properties remained unfenced for a long time, which led to unauthorized entry, logging, and other actions by external parties, for which we were blamed, while the violation acts were issued to other perpetrators. Fencing the site was not an act of concealment, but a measure for security, access control, and prevention of hazards, undertaken following a directive and in coordination with the competent authorities.

Political Attacks and Legal Defense

KYB Corporation categorically rejects attempts to turn the case into a political attack against the investor. We do not accept statements that defame our good name, create insinuations of criminal behavior, and affect the reputation of the people working on the project.

We remain committed to transparency, legality, and dialogue, but only where it is conducted with facts, and not with political insinuations and premature judgments.

KYB Corporation