A debt-for-equity swap through capital increase under a rehabilitation plan is an alternative option to rescue indebted steel mill Kremikovtzi.

This was announced by Economy and Energy Minister Peter Dimitrov in a letter that was read to the workers from Bulgaria's Kremikovtzi steel mill, who continued unabated their protests on Monday, rallying over unpaid salaries and the imminent closure of the indebted plant.

The letter points out that the proposed scheme is applicable to the private creditors' claims but not to the public receivables.

"The state cannot offer such a plan because it holds just a quarter of the company's capital and less than the one-third of the claims, which is the minimum required under the law," the minister explains.

Kremikovtzi workers accuse the government of showing no interest in their fate and have pledged to approach the European Commission for help. They have announced plans for more aggressive actions and a nationwide rally of the people working in the sector in a bid to protect the mill.

They insist on governmental help in finding an investor or an alternative scenario in case no investor shows interest.

It is still not clear whether the Brazilian CSN, the only potential bidder for Bulgaria's insolvent Kremikovtzi steel mill, is interested in acquiring the insolvent steel mill.

Kremikovtzi provides jobs for over 5 000 people and its future is a politically sensitive issue ahead of the general elections in the summer.

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