Bulgarian Bank Moves to Swallow Non-Ferrous Behemoth
Bulgaria's First Investment Bank, the largest creditor of troubled Lead and Zinc Complex (OTzK) Kardzhali, said it will financially support the plant's new owner, Harmony 2012.
The offshore company, registered just as reports broke out that mismanaging OTzK prior owner Valentin Zahariev will have to sell the plant, acquired assets of Bulgaria's largest non-ferrous metal works just this Friday 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 First Investment Bank.
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.
Saturday Borisov was present at the ceremony for the ownership transfer of OTzK, saying that the government had "done everything to preserve the metal works' life."
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. Harmony 2012 has acquired not the entire plant, but a significant part of its facilities and 50% of the land.
Two other institutions participated in the tender, one of them being First Investment Bank itself.
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