50% of Troubled Bulgaria Lead-Zinc Behemoth Up for Sale

Industry | August 11, 2012, Saturday // 15:34|  views

The front building of the Kardzhali Lead and Zinc Complex (OTzK). Photo by BGNES

A private judicial enforcer has listed for sale 50% of severely financially troubled largest non-ferrous metal works, the Lead and Zinc Complex (LZC, OTzK) in Kardzhali.

The sale surfaced Saturday on the website of private enforser Rosen Sirakov, and is effective for a month starting Monday.

The enforcer has taken up the measure after OTzK's main creditor, Bulgarian First Investment Bank won a court case against the factory and obtained a court order.

The Lead and Zinc Complex Valentin Zahariev has been chronically failing to surface his loan from FIB, which has led to the present developments.

According to the private enforcer's listing, the assets for sale, covering an area of 326,230 sq.m., havae an initial price of a bit over BGN 8.3 M.

Anonymous sources quoted by the BGNES information agency have said that the amount will cover only a fraction of the FIB credit.

They have also explained that should the assests fail to be bought, the bank will acquire a right to them, but only insofar as it can revitalize the metal factory to get back its loan.

Zahariev's mismanagement of OTzK has caused a major business and social mishap in Bulgaria, after the owner failed for months to pay the factory workers' wages.

Many employees have chosen to terminate their contracts with the Complex, some filing lawsuits against it.

Many fear that the developments of the past months are spelling the death throes of Bulgaria's once prosperous largest non-ferrous metal works.

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Tags: wages, FIB, First Investment Bank, loan, Valentin Zahariev, Kardzhali, OTZK


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