Bulgaria Troubled Steel Behemoth Assets Put on Sale

Troubled steel giant Kremikovtzi is considered the pride of communist-era industry in Bulgaria. Photo by BGNES

The site and assets of Bulgaria's largest steelmaker Kremikovtzi will be offered for sale in the middle of September, four months after the behemoth was sent into liquidation.

The closed-bid auction will start at BGN 565 517 510, which according to trade unions and analysts is far below the market price.

It was not immediately clear whether investors have declared interest in the sale.

In mid-July, Bulgarian Minister of Economy Traicho Traikov invited ArcelorMittal, the world's biggest steel producer, to participate in the liquidation sale for bankrupt metallurgical giant of Kremikovtzi.

The news comes nearly a year after the majority of creditors of the troubled steel-maker rejected the rescue plan for the struggling company, while workers staged numerous rallies to call on the state to approve the recovery plan and bring to justice those, who have allegedly siphoned the company.

The sprawling communist-era behemoth near Sofia was declared bankrupt end of May and cleared for liquidation in June, after years of struggle with a dire economic conditions, and multiple controversies about mismanagement and financial draining.

The total debts of Bulgaria’s former largest steel-maker amount to BGN 1,9 B, whereas the market value of all of its assets has been estimated at BGN 837 M.

Kremikovtzi, one of Bulgaria's biggest companies, provided jobs for over 5 000 people and its future was a politically sensitive issue ahead of the general elections last summer.

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