Tender for Bankrupt Fertilizer Plant to be Held in Bulgaria's Vratsa

Business | March 19, 2014, Wednesday // 10:38| Views: | Comments: 0
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Bulgaria: Tender for Bankrupt Fertilizer Plant to be Held in Bulgaria's Vratsa Photo by BGNES

A sealed bid tender will be held Wednesday in Bulgaria's northwestern city of Vratsa for the assets of the bankrupt fertilizer plant Chimco AD, also known as Himko AD.

The fertilizer plant has been evaluated at BGN 28 552 458, VAT excluded.

The evaluation was conducted by approved assessors which referred to it as a "fair value against a backdrop of slow liquidity."

The fertilizer plant was declared bankrupt due to debts to state-owned gas supplier Bulgargaz, the National Electric Company (NEK) and the National Revenue Agency (NRA). 1% of the debt of Chimco AD is to former workers of the plant, according to reports of the Bulgarian National Radio.

During the bankruptcy proceedings, the debts were reduced from BGN 176 M to BGN 86 M.

If no sale is sealed on Wednesday, a second auction has to be scheduled with a 20% lower price tag, according to legal requirements.

If the plant is not sold at the second auction, a piece by piece sale is to be organized.

61.66% of the debts of Chimco AD are to Bulgargaz, 24.08% are to NEK, 10.47% are to the NRA, and the remaining portion is owed to a number of different creditors, according to money.bg.

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Tags: fertilizer plant, Chimco AD, bankruptcy, tender, National Electric Company, NEK, Bulgargaz, National Revenue Agency
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