Urgently Request for Financial State Aid for BDZ

The creditors of the second debenture loan granted to BDZ. Blocked the accounts of BDZ - Passenger Transports.

The reason is that the subsidiary company is a joint-stock debtor with the holding company. The block of the account is because of a 40 million leva debt, Velin Zanchev, Deputy Minister of Transport, Information Technology, and Communications, told BNT.

"103 million is the entire debt due from a second bond issue. Which is due to a second bond issue in 2007. We have paid part of it and BDZ Holding owes 103 million principals at the moment, "explained Deputy Chief Executive Officer. - The Minister.

The sale of the assets of the national railway carrier will not take place, announced BDZ.

Two of the creditors of the Second Bond Loan have filed a claim with the Sofia City Court for BGN 40 mln on the principal of the loan against BDZ - Passenger Transport EOOD and after a decision of the Sofia City Court the claim was partially approved in the amount of BGN 20 mln. in benefit of the bondholders, as a result of which the company's accounts were seized.

The second debenture loan, amounting to BGN 240 million, was taken in 2007 to refinance old liabilities to various institutions and to carry out ongoing repairs of freight wagons, as it was not really necessary for the company to carry out its activities. So far the balance of the loan liabilities amounts to BGN 103 million.

According to the company's management, the bondholders are in their legal right to claim court fees. The decision of the Sofia City Court and the temporary seizure of BDZ Passenger Transport EOOD will not hamper the functioning of the company if a short-term solution is found.

Minister of Transport, Information Technology and Communications Ivaylo Moskovski has been informed of the situation, as well as the Ministry of Finance and the activation of state aid that has been approved by the European Commission is requested. A decision of the Finance Minister Vladislav Goranov is expected.

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