Buyer Pays in Full for Bulgaria's Obsolete Steel Mill

Lachezar Varnadzhiev, 26 (L) is the surprise buyer of Kremikovtzi. Photo by dnevnik.bg

The Eltrade Company has wired to the Bulgarian Bank for Development, BBD, the amount of BGN 284 399 500 for the purchase of the bankrupt Kremikovtzi steel mill, located near the Bulgarian capital.

The news was reported Thursday evening by the Bulgarian news agency BTA, citing the mill's receiver, Tsvetan Bankov.

The transfer had a deadline of April 18. It is the full price of Kremikovtzi, which was sold for BGN 316 M, because the company had deducted the deposit of BGN 31 600 500, made to take part in the auction.

On Tuesday, Bulgaria finally sold the production assets of the steel mill in a fourth auction to the sole bidder – the newly established local Eltrade ompany, owned by 26-year-old Lachezar Varnadzhiev.

According to the Trade Act, after a final payment has been made, the receiver must prepare the entire documentation from the auction and submit it with the Sofia City Court with an application for the judge to issue an order to transfer the ownership to the buyer. The Court is to verify the legality of the deal.

Bankov says the amount of collected documents is huge – about 1 000 pages, requiring long and hard work.

On Wednesday, First Investment Bank officially confirmed it had granted a EUR 59 M loan to Eltrade after deciding the company would be able to "carry out the project."

"Eltrade company" was established on March 8, 2011 and its capital is a mere BGN 20 000, a check in the Trade Registry shows, triggering suspicions who stays behind it. It is Varnadzhiev's only company and it is supposed to be a black and colored metal dealer.

"Eltrade company" has the same address as Nadin - N, a well-established scrap dealer. Vladimir Todorov, member of Nadin – N's board of directors, was present at Tuesday's auction.

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