Second auction of Kremikovtzi assets fails to draw bidders

Friday, 05 November 2010 16:12:09 (GMT+3)   |  
       

The second auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi, scheduled for Friday, November 5, 2010, has failed to draw any bidders, with the result that the Bulgarian government will have to cut its price further.

According to Sofia News Agency, unlike the first closed-bid auction, the second auction involved direct bidding. The starting price was BGN 452,414,008 (about $325.68 million), down by 20 percent over the initial tag at the first tender scheduled for September 13, 2010, which also failed due to lack of prospective buyers.

As no one made an offer on Friday, yet another auction will be held following a reassessment of the company's assets.

According to bankruptcy trustee Tsvetan Bankov, the rail transport network and the electricity and natural gas distribution grids on the site of the plant are its biggest assets and should draw investors once the price is lowered even further. Mr. Bankov attributed the failure of the November 5 auction to what he called "too high a price".

As SteelOrbis previously reported, Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($412 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May this year and cleared for liquidation in June.


Similar articles

Kremikovtzi assets acquired by Sofia-based Eltrade at fourth auction

12 Apr | Steel News

Fourth Kremikovtzi auction scheduled for April 12

07 Mar | Steel News

Third Kremikovtzi auction scheduled for February 7

24 Dec | Steel News

Vorskla Steel expresses interest in acquiring Kremikovtzi

30 Jul | Steel News

Kremikovtzi to be offered for sale in mid-September this year

28 Jul | Steel News

Bulgaria invites ArcelorMittal to take part in Kremikovtzi liquidation auction

15 Jul | Steel News

Kremikovtzi assets acquired by Sofia-based Eltrade at fourth auction

12 Apr | Steel News

Fourth Kremikovtzi auction scheduled for April 12

07 Mar | Steel News

Third Kremikovtzi auction scheduled for February 7

24 Dec | Steel News

Vorskla Steel expresses interest in acquiring Kremikovtzi

30 Jul | Steel News