The auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi, scheduled for today, September 13, 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, as there were no offers, a second auction with direct bidding will be held by November 15 this year, and the starting price is expected to be reduced by 20 percent.
Bankruptcy trustee Tsvetan Bankov declined to comment on what would be the next steps should the second auction fail as well.
The starting price for the closed-bid auction was set at BGN 565,517,510 (about $370.55 million), which is considered far below the market price by trade unions and analysts.
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 and cleared for liquidation in June this year.