Court to Decide Bulgaria Steel Mill Fate in January 2010

The date for claims by other creditors of the steel mill expires Monday. Photo by BGNES

The Sofia Administrative Court will rule on the fate of the ailing Bulgarian steel mill Kremikovtzi at the end of January 2010.

It was announced Monday that Bulgaria's Economy, Energy and Tourism Minister, Traicho Traikov has appealed to the Court to acknowledge the BGN 700 M in state aid given to Kremikovtzi.

In July the Court confirmed that the previous government’s claim for the aid to be returned had been issued by an incompetent authority. The Bulgarian state was therefore moved below the official bondholders of the mill in the list of creditors. The Court will present its final decisions regarding Kremikovtzi creditors at the end of January 2010.

The date for claims by other creditors of the steel mill expires Monday. Three experts will calculate the share of each creditor in a new company - The 57 largest creditors of Kremikovtzi are ready to capitalize their debts and become shareholders. Their claims amount to almost BGN 1,5 B.

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