Bulgarian Transport Minister Kristian Krastev has fired Vladimir Vladimirov, chairman of the Board of Directors of the troubled Bulgarian State Railways company, BDZ Holding.

Another member of the Board of Directors, Emil Ivanov, has been also fired, according to local media.

Vladimirov and Ivanov will be replaced by Chavdar Trendafilov and Nikolay Naydenov, the Bulgarian Transport Ministry has informed.

The deadline for companies to submit their bids for privatization of the troubled Bulgarian State Railways company expires Friday.

Several days ago, Krastev, launched emergency meetings to salvage BDZ from liquidation. He says the company is on the brink on collapsing, explaining the creditors are owed about EUR 35 M, while its total debt is over BGN 700 M.

At the beginning of February, the Sofia City Court ordered a freeze of 100% of the assets of the cargo unit of Bulgarian State Railways company, BDZ Holding.

The freeze happened on the request of the Dublin-based German-Irish bank Depfa Bank, which owns bonds from the first bond loan for BDZ. BDZ owes to Depfa about BGN 6.3 M.

The news came on the heels of reports that five banks have filed a claim with the London Arbitration Court to declare BDZ Holding, bankrupt.

In mid-November 2012, Bulgaria's Privatization Agency launched a second privatization procedure for BDZ's Freight Services, after the first one fell through.

The second attempt to sell the cargo unit of BDZ only included strategic and financial investors.

The privatization of BDZ's profit making unit, Freight Services, is to secure money to cover huge debts of the company and help revive its other unit, Passenger Services.

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