Bulgarian Bank Swallows Non-Ferrous Behemoth

Bulgaria's First Investment Bank, FIB, the largest creditor of troubled Lead and Zinc Complex (OTzK) Kardzhali, has acquired its lead plant in a tender without competition.

The tender's results were announced Tuesday, BGNES reports.

The office of private law enforcement officer, Rosen Sirakov, has received only FIB's offer within the one month deadline for submitting the documentation.

There were two public sales in the Complex' assets – 63 buildings with a listing price of BGN 474 862 and 50% of the land plot on which they are located for the price of BGN 3 704 683.

FIB upped the listing price by just BGN 1. The Bank must deposit the money within one week in order become the official owner.

Sirakov is quoted saying that the entire OTzK is now sold.

In September 2012, Harmony 2012, an offshore company, registered just as reports broke out that mismanaging OTzK prior owner Valentin Zahariev will have to sell the plant, acquired the zinc assets of Bulgaria's largest non-ferrous metal works for BGN 8.6 M.

A vast number of Bulgarian media have reported reliable information pointing that Harmony 2012 is controlled by the people controlling FIB.

One of the people behind FIB, Tseko Minev, is also president of the Bulgarian Ski Federation and owner of the Yulen and Vitosha ski ski companies, and is known to be close to Bulgaria's PM Boyko Borisov.

The crisis around the Lead and Zinc Complex broke out early 2012, after previous owner Zahariev chronically failed to cover his loan installments to creditors and pay workers' wages.

The tender was launched on August 13 with a month-long deadline, after a private law enforcer listed for sale 50% of the troubled non-ferrous behemoth.

The enforcer took up the measure after FIB won a court case against the factory and obtained a court order.

The total debt of the plant is estimated at BGN 350 M. In September, Harmony 2012 also acquired 50% of the land.

Two other institutions participated in the first tender, one of them being First Investment Bank itself.

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