National Electric Company Capitalizes Debts in Bulgaria Steel Mill

Bulgaria’s Minister of Economy, Energy, and Tourism, Traicho Traikov said that Kremikovtzi is a “fake industrial entity”, and is to be liquidated. Photo by BGNES

Bulgaria steel mill Kremikovtzi’s administrator, Tsvetan Bankov, stated Tuesday that their largest creditor the National Electric Company (NEK) has agreed to capitalize the money the factory owns them

NEK will hold 59 726 620 shares in the mill, meaning that it has become the majority owner of Bulgaria’s former steel giant.

So far 14 out of 59 Kremikovtzi creditors have expressed a wish to participate in the scheme of capitalization of debts by giving their final consent for the transformation of their claims into BGN 1 shares.

Batkov noted that the deadline for a final expression of intent from creditors expired Monday, however he confirmed that negotiations are continuing.

His statement came after Bulgaria’s Minister of Economy, Energy, and Tourism, Traicho Traikov said that Kremikovtzi is a “fake industrial entity”, and is to be liquidated.

“Between August 2009 and now, Kremikovtzi’s debt to the National Electric Company NEK has grown by BGN 13 M. The role of the state through the judicial system will be to investigate the legality of all activities carried out by the various management teams of the plant, which is going to take years,” the Minister declared.

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