Bulgaria's former largest steel mill “Kremikovtzi” had withdrawn the application for a complex permit for its environmentally clean productions.

The move has happened a month ago, the Minister of Environment, Nona Karadzhova, announced Thursday, adding the permit would not be issued.

The deadline for the mill to obtain the permit expired more than a year ago – in October, 2008. “Kremikovtzi” is now on the so-called “stand by” regime, proposed by Bulgaria to the European Commission as a response to questions regarding the expired deadline to issue the permit.

On Wednesday, Bulgaria's government ruled out adopting a proposal for two of the biggest bondholders of indebted Kremikovtzi steel mill, state-owned companies, to acquire a majority stake in it to prevent an imminent shutdown.

200 workers from the plant gathered in front of the Economy and Energy Ministry Monday, calling on the state-owned gas provider Bulgargaz and the state power utility NEK, two of the major creditors in the plant, to become majority owners.

Key Bulgarian ministers made it clear last week that bankrupt steel-making giant Kremikovtzi would most likely be liquidated, since 80% of Kremikovtzi’s creditors have disapproved the action plan to save the steel-maker, presented by the administrator.

The sprawling communist-era behemoth near Sofia was declared insolvent in August last year and has suffered huge loss of production.

Workers have yet to receive BGN 56 M in unpaid salaries. Some 3 000 employees have been dismissed or have left the company, with some 3 170 staff still on the books.

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