The businesses of Bulgaria's troubled steel-maker Kremikovtzi will be wound up and its assets – offloaded after a court rejected the rescue plan, presented by its administrator.

Sofia City Court did not allow the struggling company creditors to discuss its action plan, citing the finance minister disagreement to space out the payment of state takings.

The news comes three months after the majority of creditors of the troubled steel-maker rejected the rescue plan for the struggling company, while workers staged numerous rallies to call on the state to approve the recovery plan and bring to justice those, who have allegedly siphoned the company.

At the beginning of November Bulgarian ministers made it clear that bankrupt steel-making giant Kremikovtzi would most likely be liquidated, sinee 80% of Kremikovtzi’s creditors have disapproved the action plan to save the steel-maker, presented by the administrator.

Creditors and government have struggled unsuccessfully for several months to reach agreement on a plan to salvage the plant.

The sprawling communist-era behemoth near Sofia was declared insolvent in August 2008 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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