Sofia Heating Utility Might Freeze over Massive Debt

Bulgarian state gas company Bulgargaz is ready to stop deliveries to Sofia Heating Utility starting July, if the utility fails to start servicing its massive overdue debts.

This was announced by Bulgargaz CEO Nikolay Gogov at a public discussion Tuesday.

Bulgargaz has had troubles collecting dues from several companies in Bulgaria, with the chief debtors being heating utilities in Sofia, Burgas, Pleven and Vratsa.

In the beginning of June, Bulgargaz announced it has filed court claims for a total of BGN 500 M of overdue debts.

CEO Gogov has explained that the company has absolutely no resources to further credit its debtors.

Sofia Heating Utility owes the state gas company some BGN 150 M, being its largest debtor.

If the ultimatum is not met, most parts of the Bulgarian capital will remain without running hot water.

Gogov recalled that a prior stopping of deliveries to Burgas Heating Utility proved effective and the two companies agreed on a plan for servicing of the utility's BGN 8.7 M debt.

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