Bulgaria Kremikovtsi Steel Mill Might Declare Bankruptcy by June 17
Business | June 11, 2008, WednesdayThe announcement regarding the insolvency of the infamous steel mill "Kremikovtsi" is expected on June 17, according to Vasil Yanachkov, Chair of the Bulgarian Steel Workers Federation at the "Podkrepa" trade union.
However, Yanachkov further stated that the making of such decision could eventually be postponed or it could be decided that there was no reason to initiate bankruptcy procedures, adding that Alexander Tomov had been released from the mill's Board of Directors as early as February with the decision of the mill's Monitoring Council.
The Ukrainian Energy Minister together with the Ukrainian businessman Konstantin Zhevago visited the still mill Wednesday afternoon. Zhevago, who is candidate to purchase "Kremikovtsi" also had talks with Bulgarian Prime Minister Sergey Stanishev before leaving back for Ukraine later Wednesday.
According to Yanachkov, both bidders - Konstantin Zhevago and Lakshmi Mittal have made good offers, each including different advantages.
On one hand-side "Kremikovtsi" could be proud of the fact that the world steel production leader "ArcelorMittal" was interested in Bulgaria's still mill. Analysis provided by "ArcelorMittal" shows that in our region the steel production per capita is 50 to 60 kilos per year while internationally it is twice higher.
"We have no doubt that "ArcelorMittal" would fulfill their promises since we have collected information about their 70 plants all over the world", said Yanachkov.
According to him Zhevago's advantages include the fact that he disposes of iron-ore mines, which, in addition, are closer to Bulgaria distance-wise and an iron-ore enriching complex while a major part of the still mill's equipments is from Ukraine.
At the same time, the press-center of the Ukrainian businessman had announced that Zhevago is also interested in purchasing the football club CSKA, center of controversy in the last two weeks because the club's license had been revoked by UEFA.
However, Yanachkov further stated that the making of such decision could eventually be postponed or it could be decided that there was no reason to initiate bankruptcy procedures, adding that Alexander Tomov had been released from the mill's Board of Directors as early as February with the decision of the mill's Monitoring Council.
The Ukrainian Energy Minister together with the Ukrainian businessman Konstantin Zhevago visited the still mill Wednesday afternoon. Zhevago, who is candidate to purchase "Kremikovtsi" also had talks with Bulgarian Prime Minister Sergey Stanishev before leaving back for Ukraine later Wednesday.
According to Yanachkov, both bidders - Konstantin Zhevago and Lakshmi Mittal have made good offers, each including different advantages.
On one hand-side "Kremikovtsi" could be proud of the fact that the world steel production leader "ArcelorMittal" was interested in Bulgaria's still mill. Analysis provided by "ArcelorMittal" shows that in our region the steel production per capita is 50 to 60 kilos per year while internationally it is twice higher.
"We have no doubt that "ArcelorMittal" would fulfill their promises since we have collected information about their 70 plants all over the world", said Yanachkov.
According to him Zhevago's advantages include the fact that he disposes of iron-ore mines, which, in addition, are closer to Bulgaria distance-wise and an iron-ore enriching complex while a major part of the still mill's equipments is from Ukraine.
At the same time, the press-center of the Ukrainian businessman had announced that Zhevago is also interested in purchasing the football club CSKA, center of controversy in the last two weeks because the club's license had been revoked by UEFA.
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