Bulgaria's government has 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.

“Should this scenario unfold, the state-owned companies will have to pay Kremikovtzi debts while they have no permits for work and also have to pay back public takings to the Finance Ministry,” the minister said at a round table on Wednesday.

The forum was also attended by representatives of the trade unions, who want the government to adopt the recovery plan for the company and give up plans for its liquidation.

”Shutting down the ailing state-run plant before winding up its businesses and offloading its assets will make more difficult the outstanding payments to the laid-off workers and their social securities,” Zhelyazko Hristov, leader of KNSB trade union, said at a round table on Wednesday.

In their Monday protest 200 workers from the plant gathered in front of the Economy and Energy ministry, 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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