Today's setback comes despite a crucial new witness revealing he saw Sankey hit Mr Georgiev with a rock.
The Bootle man, who knew neither Shields or Sankey, has even agreed to give evidence in Varna's county court.
Michael's MP Louise Ellman said: "It is bitterly disappointing, but not entirely surprising, because the court refused to listen to any new evidence including the Graham Sankey confession.
"The campaign for Michael and his family will continue."
Michael was on holiday in the Golden Sands resort with pals after watching Liverpool's Champions League victory in Istanbul when he was arrested. He was accused of carrying out the attack on Mr Georgiev outside a takeaway.
Liverpool Labour party leader Joe Anderson, who has campaigned on Michael's behalf, now hopes the new evidence will be considered.
