Bondholders Reject Recovery Plan for Bankrupt Bulgarian Steel Mill
- Tweet
Send to Kindle
The deadline for bondholders' final decision on the Kremikovtzi recovery plan is November 9, 2009. Photo by BGNES
The shareholders of the troubled steel-maker Kremikovtzi have rejected the recovery plan proposed by the assignee in bankruptcy, Tsvetan Bankov.
According to Darik Radio, the shareholders are unwilling to go ahead with the plan which provides for the recapitalization of BGN 944 M owed to creditors by transforming them into Kremikovtzi shares.
A month ago, Bankov invited all creditors to decide on whether they wanted to capitalize the money the factory owns them. According to the replies, the creditors wanted to transform into shares debts totaling BGN 1,6 B.
The total debts of Bulgaria’s former largest steel-maker amount to BGN 1,9 B, whereas the market value of all of its assets was estimated at BGN 837 M at the beginning of September 2009.
The creditors of the steel plant include the state-owned companies Bulgargaz (gas provider), the National Electric Company NEK, and the railway operator BDZ.
November 9, 2009, is the deadline for the bondholders to make a final decision on the recovery plan after any potential readjustments.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
- » Cherries from Greece and Turkey are expected to Flood the Market in Bulgaria
- » Decline in Industrial Production in the EU in March but Increase in Bulgaria
- » Bulgarian Employers with a National Protest on May 18 over Electricity and Fuel Prices
- » Trucks and Buses blocked Tsarigradsko Blvd in Sofia and All Entrances to Plovdiv
- » Will VR & Mobiles Retire PCs in the Future?
- » 100 Buses and 300 Trucks took part in the Protest of Carriers in Sofia
