The market evaluation of Bulgaria's obsolete steel mill Kremikovtzi is BGN 837 M, according to the appraisers' report published on the company's internet site.

This amount includes long-term material assets and shares.
The liquidation value or the market price for a forced sale is nearly BGN 603 M.

The lands owned by the mill have the highest value of BGN 202 M while the buildings are appraised at BGN 189 M.

The effective date of the appraisal, conducted by the "Amirita" Consulting Agency is September 1.

The Kremikovtzi assignee in bankruptcy, Tsvetan Bankov, told the Bulgarian information agency BTA that it is obvious the mill's assets cannot cover its debts amounting to BGN 1,9 B, but failed to commit to any forecast about possibilities to sell Kremikovtzi at market value citing the global economic crisis.

After the mill's creditors examine the evaluation of the assets, they would declare their final decision about capitalizing their their debts and becoming shareholders.

On August 30, creditors including State owned companies such as the railroads, Bulgargaz and the National Electric Company declared their readiness to become shareholders.

The capitalization of the debt is the only mean to implement a healing plan for Kremikovtzi. The sole other possibility is liquidation.

The sprawling communist-era behemoth near Sofia was declared insolvent in August last year with debts exceeding EUR 1 B. It is a big source of pollution and urgently needs re-furbishing.

Kremikovtzi, one of Bulgaria's biggest companies, provides jobs for over 5 000 people and its future was a politically sensitive issue ahead of the general elections in the summer.

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