Bulgarian Military Holding TEREM in Deteriorating Financial Condition

Business | June 6, 2014, Friday // 16:45|  views

Bulgarian Defense Minister Angel Naydenov, photo by BGNES

Bulgarian Defense Minister Angel Naydenov has drawn attention to the worsening condition of military holding TEREM, stressing that it keeps generating losses.

Speakling Friday in Parliament, Naydenov said that the situation was critical at a number of companies within the holding.

"The constant deterioration of the economic situation of the subsidiaries of TEREM clearly indicates their non-viability as separate business entities," Naydenov declared, according to reports of mediapool.bg.

The military holding brings together six plants which have run up losses of BGN 1.55 M, according to a report of the company published on the website of the Finance Ministry.

"Without the financial support of the parent company, a part of the subsidiaries would have already gone bankrupt. The question then arises as to how the companies will restore the money provided in the form of loans if TEREM EAD stops funding them," Naydenov said.

Except for the Shiprepair Yard "TEREM" ("Flotski Arsenal"), all of the other plants are currently uncompetitive and rarely win free market contracts.

Naydenov announced that the Shiprepair Yard "TEREM" had secured its workload for a year and a half onwards, or by end-2015.

Bulgaria's Defense Minister also informed that the CEO of TEREM, Stancho Petkov, had been dismissed on November 19, 2013 due to poor results and not because he had been appointed by the center-right GERB government.

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Tags: Defense Minister, Angel Naydenov, military plant, TEREM, losses


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