Fourth Kremikovtzi auction scheduled for April 12

Monday, 07 March 2011 13:37:14 (GMT+3)   |  
       

The fourth auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi is scheduled for April 12, 2011, with the starting price being decreased further to BGN 316 million (approx. $226 million), down 20 percent from the third auction held on February 7, 2011 and down 44 percent from the initial price at the first auction held on September 13, 2010, the Sofia Echo has reported.
 
The previous auction for Kremikovtzi fell through, as it attracted just one prospective bidder, who, however, had not paid the necessary deposit.
 
In the fourth auction for Kremikovtzi's assets, candidates will be required to deposit 10 percent of the starting price, i.e., BGN 31.6 million (about $22.6 million). According to the plant's bankruptcy trustee Tsvetan Bankov, the forthcoming auction will attract more candidates as prices of iron ore and steel on the international markets have started to increase again.
 
On March  4, 2011, Bulgarian Economy Minister Traicho Traikov said that Spanish consortium SHP-Advisers was interested in purchasing some of the assets of Kremikovtzi. The companies in the consortium were ready to apply to the European Commission with a €20 million project for the reclamation of the steel mill site, he said after a meeting with the consortium's head in Madrid.

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