According to GM Mikhail Golubev in the latest issue of Chess Today (http://www.chesstoday.net/), here is the view from the Bulgarian side:

The Bulgarian chess federation and Danailov himself are [still] not protesting officially, because [in principle] they have nothing against the organisation of the match in Lviv. They understand efforts of Kirsan Ilyumzhinov and other involved people. But the Bulgarian side waited for six months for the [Lviv] money to be found, and they cannot wait endlessly.

Many people do not understand that [initially] it was FIDE who proposed to organise the match in Bulgaria. Danailov also said that endless postponements of the deadline have negative impact on the image of FIDE as a world chess organisation.

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Chess Daily News from Susan Polgar
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