Debt Dispute In A Bulgarian Village Ends in Tragic Murder Over 42 BGN
A horrifying incident unfolded in the quiet village of Yudelnik, near Ruse, as a dispute over a mere 42 BGN (21 EUR) culminated in a fatal outcome
Russian steel and mining giant Mechel has successfully concluded the sale of the heating utility in the Bulgarian Danube city of Ruse in a bid to slash its debt load.
Mechel announced it has signed an agreement for the disposal of 100% of Toplofikatsia Russe EAD to Toplofikatsia Pleven, a privately-held Bulgarian power company.
The deal price has been set at approximately EUR 27.7 M based on the asset's equity value.
As a result of this transaction, Mechel's leverage is expected to be reduced by approximately USD 55.2 M.
Toplofikatsia Pleven will assume all of TPP Rousse's investment obligations.
Additionally, the buyer will assume the accounts payable to Mechel Carbon for historical coal deliveries in amount of USD 18.8 M. One of the deal's requirements is obtaining the appropriate permission from Bulgaria's Commission on Protection of Competition.
VTB Capital and UniCredit Bank acted as financial advisors and CMS as legal advisor to Mechel OAO in this transaction.
Earlier this year Mechel OAO has said it wants to sell non-core and unprofitable assets to finance debt repayment. The company is seeking buyers of assets in Europe and the countries of the former Soviet Union.
Following a September 21 meeting of Mechel OAO's Board of Directors, the company published a list of assets earmarked for sale due to their inconsistency with the new development strategy.
Mechel OAO announced it would divest of the following assets: enterprises that make up Mechel's Eastern European Steel Division S.R.L., Donetsk Electrometallurgical Plant PJSC (Ukraine), Invicta Merchant Bar Ltd. (UK), UAB "Mechel Nemunas" (Lithuania), Mechel Service Global B.V. (except Mechel Service OOO (Russia)), Voskhod-Chrome LLP (Kazakhstan), Voskhod-Oriel LLP (Kazakhstan), Tikhvin Ferroalloy Plant OOO (Russia), Southern Urals Nickel Plant OAO (Russia), Kuzbass Power Sales Company OAO (Russia), Toplofikatsia Rousse EAD (Bulgaria).
The Board of Directors of the Russian steel and mining giant also recommended evaluating the possibility of a potential divestment of a minority stake of up to 25% in Mechel Mining OAO to a strategic partner in order to speed up the implementation of the mining division's priority project, the development of the Elga coal deposit.
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